Question Description
1.Highlight some of the red flags that stakeholders should have been aware of. Why do you think so many investors ignored the red flags? What part did the auditors play?
2.Elaborate on exactly what Petters and his employees were doing with physical inventory and the recording of inventory. How were lock boxes used by Petters and the banks? These schemes should have been uncovered by many players. Comment on how professional skepticism is essential in an accountant's professional life.
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