Refer to Exhibit and to the Auditing in Practice features Channel Stuffing at ArthroCareThe Importance of Professional

Question:

Refer to Exhibit and to the Auditing in Practice features “Channel Stuffing at ArthroCare—The Importance of Professional Skepticism” and “The Importance of Professional Skepticism in Auditing Revenue at Tvia.” What methods have been used to fraudulently inflate revenue? How can auditors use professional skepticism to help identify these fraud schemes?