In 2003, the Securities and Exchange Commission released an Accounting and Auditing Enforcement Release (AAER) describing charges
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In 2003, the Securities and Exchange Commission released an Accounting and Auditing Enforcement Release (AAER) describing charges and discipline against TruServ Corporation and the company’s chief financial officer. The charges claim that TruServ underestimated the accrual for merchandise payable.
Required
Find and read the 2003 AAER related to TruServ Corporation. Explain the scheme that the company used to understate the accrual for merchandise payable. Finally, what audit procedures might an auditor use to uncover this misstatement?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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TruServ is a hardware store buying cooperative On March 31 2000 TruServ reported a loss of more than 131 million for the fiscal year 1999 which includ...View the full answer
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Related Book For 
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
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