Complete Extensive Case 3 at the end of Chapter 2 in your textbook. The extensive case deals with Johnson Manufacturing and managerial accounting fraud.

Considering Extensive Case 3, address the following questions in the form of a short essay:

  • What factors in Johnson's control environment led to and facilitated the manager's manipulation of inventory?
  • What pressures did Harris feel in deciding to overstate inventory?
  • What rationalization did Harris use to justify her fraud?
 
 
 
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    Week 02 Case Study
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