The company engaged in channel stuffing by shipping goods to customers that had not been

ordered.

The allowance for doubtful accounts was understated because the company altered the aging of

accounts receivable to reduce the number of days outstanding for delinquent receivables.

The accounts receivable clerk stole checks received in the mail and deposited them in an account

that he controlled. He issued credit memos to the customers in the amount of the diverted

cash receipts.

The company contacted a major customer and asked them to accept a major shipment of goods

before year end. The customer was told that they could return the goods without penalty if

they were unable to sell the goods.

A cashier stole cash receipts that had been recorded in the cash register.

The company recorded "bill$-$and$-$hold sales" at year end. Although the invoices were recorded as

sales before year end, the goods were stored in the warehouse and shipped after year end.

The company did not record credit memos for returns received in the last month of the year. The

goods received were counted as part of the company's year$-$end physical inventory

procedures.

A cashier stole cash receipts by failing to record the sales in the cash register.

The CFO recorded fictitious credit sales at the end of the year without recording the associated

cost of sales and reduction in inventory.