Question

Which statement is true regarding the​ Phar-Mor Case​ Study?

A.

The accounting auditing firm of Coopers​ & Lybrand probably​ shouldn't have let​ Phar-Mor decide in advance which stores the auditor would visit to check their inventory levels.

B.

One of the noteworthy expenditures during the​ Phar-Mor fraud was a secret underground lair for CEO Mickey​ Monus, where he had numerous private parties using company funds.

C.

CFO of​ Phar-Mor Pat Finn was acquitted of all charges of accounting fraud because he cooperated with federal investigators.

D.

CEO Mickey Monus was easily convicted at his initial trial due to the huge amount of evidence against​ him, including numerouls cooperative witnesses from his own accounting department.

Answer 1

Option A is the correct answer. The auditing firm checked only 4 stores out of 179 which were known to Phar-mor in advance.