Phar-Mor Inc. was one of the largest super discount drugstores in the early 1980’S.The Company was a complete success with over 300 discount super stores across the United States and employing thousands of workers. The company’s first signs of financial difficulty became obvious in 1988 as speculation increased about Phar-Mor’s decreasing profit margins. The fraud team consisted of several former auditors, including auditors who had worked for Coopers & Lybrand on prior Phar-Mor audits. The Phar-Mor had two sets of books. The post fraud examiner determined that the inventory sheets contained fraudulent journal entries, missing explanations or supporting documentation, and contained doubtful account names. The journal entries recorded to identify
