Pakhama Enterprises wants to extent its credit terms in order to increase the sales to grow the business. A consultant has, however, warned them that this can lead to overtrading. Do some research on overtrading and prepare and e‐mail to management in which you explain what overtrading is as well as what the dangers of overtrading are. Remember to reference your answer and add your reference list to the bottom of this question

Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter2: The Auditor’s Responsibilities Regarding Fraud And Mechanisms To Address Fraud: Regulation And Corporate Governance
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Pakhama Enterprises wants to extent its credit terms in order to increase the sales to grow the business. A consultant has, however, warned them that this can lead to overtrading.


Do some research on overtrading and prepare and e‐mail to management in which
you explain what overtrading is as well as what the dangers of overtrading are.
Remember to reference your answer and add your reference list to the bottom
of this question.

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