Professor Elam

ACE Hardware  says a $145 M inventory error from 2002 will delay its intent to go public.  We study inventory practices in Intermed I and will re visit that in the audit class.  Gee how does such a discrepancy happen? The answer is that over time people tend to do the same thing over and over.  Analytical procedures afford a way to detect things that are out of kilter.  And that would include checking the perpetual inventory records to the actual ledger amount, whoops……