Nashwa Credits-Nefret created 28 fictitious credit memos totaling $363,000 from Nashwa Distributions, the main supplier of health and beauty aids to Nefret.
Nefret's controller initially told the auditor that the credits were for return ed goods, then said they were a volume discount, and finally stated that they were a payment so that Nefret would continue to use Nashwa as a supplier.
However, an Abdul&El-Emir staff auditor noticed the amount and concluded that a $257,000 payment to retain Nefret's business was too large to make economic sense.