This case pertains to the Phar Mor video called “How to Steal $500 Million” that you will view in class. Research the professional standards for the auditors’ consideration of fraud in financial statement audits. Use your notes taken during the film and your research to complete your case paper. In the paper, prepare an analysis based on the specific fraud factors found in the current audit literature and discuss the fraud related issues that would have been identified during the planning and audit procedures of the company. Please relate specific fraud risk factors from professional guidance to specific examples noted in the film. Also, discuss the actual frauds committed by Phar Mor management. Finally, discuss the auditor’s documentation requirements related to fraud. Grading will be assessed as follows:
a. You should identify at least 5 fraud risk factors.
b. Identify actual frauds that were perpetrated by Phar Mor management.
c. You should develop at least 5 auditor’s documentation requirements that are relevant to this case.
d. Writing quality and level of effort on case submission as a whole.