Phar Mor Case Study

Satisfactory Essays
Although the investors are not responsible for the fraud committed at Phar-Mor they do hold partial responsibility for the loss of their investment. Because investors should remember that an auditor can only attest with reasonable assurance on audit reports that the financial statements are not materially misstated and internal controls are reliable. An investor has the responsibility to do thorough research on any potential investment reading carefully through prospectus, annual reports, and other offering information. Investors also must consider all investment risks and returns between their investments and investment objectives and remember that every investment has some degree of risk and that it is possible to lose money on any
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