Edge and Gregg,LLP would most likely discover channel stuffing in the financial statements of a client through the use of trend analysis.

Question

Quizplus · Accepted Answer

Trend analysis is a technique used by auditors to analyze financial statement data over a period of time to identify unusual changes or patterns. Channel stuffing involves the manipulation of sales invoices to inflate revenue, which would show up as an unusual increase in sales over time. Therefore, Edge and Gregg, LLP would most likely discover channel stuffing through trend analysis.

Edge and Gregg,LLP Would Most Likely Discover Channel Stuffing in the Financial