Discuss different scenarios on how fraud is perpetrated through the classification of inventory. Some of the largest business frauds ever perpetrated have involved the misstatement of inventory. There is considerable information regarding inventory fraud available on the Internet. Search for information about inventory fraud at any company and respond to the following questions:

• 1. Make a short explanation in your own words about the nature of the inventory fraud.
• 2. Who perpetrated the fraud? Who was affected by the fraud? How was the fraud discovered?
• 3. What has been done to help prevent this fraud from recurring in the future, or what could be done to prevent this type of fraud?