Phar Mor Case Summary

Another factor that contributed to Phar-Mor’s high inherent risk assessment is because prior audits resulted in misstatements and exposed system weaknesses for Phar-Mor. Coopers had even expressed concern to management that Phar-Mor was engaged in hard-to-reconcile accounting practices” and called for improvements. They also recorded in their work papers that Phar-Mor appeared to be “systematically exaggerating its accounts receivables and