The Phar-Mor fraud began when management:
A)Forgot to change the budgeted figures that had been incorrectly computed.
B)Attempted to make the actual net income match the budgeted amounts.
C)Overstated their expenses to cover amounts embezzled from the company.
D)Understated the revenue in order to reduce the tax payable to the IRS.

Question

Quizplus · Accepted Answer

The Phar-Mor fraud began when management attempted to make the actual net income match the budgeted amounts by overstating inventory to cover up losses from fraudulent activities.

The Phar-Mor Fraud Began When Management