Case Phar –Mor Perpetrated
“Fraud” Please respond to the following:
• From the e-Activity, determine the main reasons why several members of top management in Phar-Mor perpetrated the financial statement fraud. Next, recommend one (1) strategy that the auditors might have taken to detect or prevent the fraud. Provide a rationale to support your recommendation.
• From the case study, analyze the financial data as presented. Next, choose at least one (1) pattern within the data that appears to be inconsistent, and propose one (1) strategy that one could use to audit this pattern. Provide a rationale to support your response.
“Alternative Minimum Tax” Please resppond to the following:
• Analyze the rules concerning the alternative minimum tax for individual taxpayers. Based on your analysis, recommend at least two (2) changes to the alternative minimum tax that would be fairer to an individual taxpayer. Provide a rationale for your recommendation.
• Debate it! Married individual taxpayers who file separately should not pay a higher rate than married individuals who file jointly
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