Nefret Stores is a large discount cosmetic department store chain The company
has recently expanded from 5 to 15 stores by borrowing from several large financial institutions and from a public offering of common stock. A recent investigation has disclosed that Nefret materially overstated net income. The company understand their accounts payable and recorded fictitious supplier credits that further reduced accounts payable. As a result, an Income & Sales Tax Department investigation was critical of the evidence gathered by Nefret's audit firm,
Abdul & EL-Emir, in testing accounts payable and the supplier credits.