11-40 LO 3 Refer to the Auditing in Practice feature Fraud in the

Acquisition and Payment Cycle at WorldCom and Phar-Mor. Compare and contrast the nature of these two frauds, motivations underlying the frauds, and how management perpetrated these frauds.

11-47 LO 8 Refer to the Auditing in Practice feature Weaknesses in

Performing Substantive Analytical Procedures: The Case of Deloittes PCAOB Inspection Report. Describe the errors that Deloittes auditors made with regard to conducting substantive ana- lytical procedures for inventory. Explain the potential implications of their errors.