Identify deficiencies in the sufficiency and appropriateness of the evidence gathered in the audit of accounts payable of Grande Stores.

Grande Stores is a large discount catalog department store chain. The company has recently expanded from 6 to 43 stores by borrowing from several large institutions and from a public offering of common stock. A recent investigation has disclosed that Grande materially overstated net . Theis was accomplished by understating accounts payable and recording fictitious supplier that further reduced accounts payable. An SEC investigation was critical of the evidence gathered by Grande’s audit firm, Montgomery & Ross, in testing accounts payable and the supplier credits.The following is a description of some of the fictitious supplier credits and unrecorded amounts in accounts payable, as well as the audit procedures.1. Neo: too much2. typing. I’m sure3. you have a copy4. of 1 thru 4.Required:Identify deficiencies in the sufficiency and appropriateness of the evidence gathered in the audit of accounts payable of Grande Stores.