Inventory is an asset that is commonly subject to fraud. In one famous case in the United States, managers used fictitious inventory purchases to perpetuate a massive inventory fraud. MiniScribe Corporation was a company that manufactured and sold computer equipment. The fraud involved placing bricks in the boxes designed for merchandise, shipping them to customers and recording a sale when the box was shipped.

1. What would be the effect on the income statement and the balance sheet of shipping bricks and recording those shipments as sales? 

2. Would this fraud be effective in the long run?