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Case #2 - Wayland Manufacturing Company: Accounts Payable Fraud WaylandManufacturing Company is a privately-heldcompany with a 12/31/18year-end. This is the first year your firm has
Case #2 - Wayland Manufacturing Company: Accounts Payable Fraud WaylandManufacturing Company is a privately-heldcompany with a 12/31/18year-end. This is the first year your firm has done the audit.In previous years, Waylandused a one-person CPA firm to perform review services and prepare their tax returns. The bank has now insistedonan audit due to the needfor a substantial increasein thesizeof theloansfromthe bank. Like many manufacturing companies, Wayland has had difficulty increasing profits andthisyeartheyare likely to incurtheirfirstloss ever.Thebankrecommendedyourfirm because of close business relations in the past. You have been assignedtothe auditofpurchases andaccountspayable.The instructions from Arlene Bradley, your audit manager, are for you to use ACL to the maximum extent possible. You have been provided with the following four electronic files that are already included in ACL under the company'sname: 1. Purchase transactions on accounts payable for 2018 (Table: Wayland_ Purchase_Transactions). Purchases on accounts payable transactions are posted tothe generalledger monthly.The totalsonthegeneralledger are as follows: January $ 85,850.10 July $ 52,940.91 February 142,091.60 August 70,112.58 March 145,744.80 September 48,954.66 April 16,774.01 October 686,302.06 May 25,386.41 November 1,314,985.62
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