The fraud perpetrated at Rite Aid could have been detected through the reconciliation of liabilities with monthly statements from the creditors. By reconciling the liabilities with the vendors’ statements, the auditors would have been able to detect any omission of liabilities or the reversal of expenses as was the case at Rite Aid. Also, the auditors could have used analytical procedures such as ratios for the year of audit and compared it to prior periods to detect unusual patterns or trends. However, the fraud at Rite Aid had the support of management, which made it difficult to detect. In regards to the payment of the employees, I think that it helped to cover up the fraud. Money is always a good motivator. Moreover, there is usually
