Memorandum Preparation

You are a senior manager at Mason & Co.  The audit partner you have been assigned to has asked you to read the above article and prepare a memorandum on the Luckin Coffee fraud.  He intends to use your memo as the basis for making a presentation at a professional meeting.  He has indicated that the quality of the memo will be an important aspect of your annual evaluation.  He has asked that the memo not exceed 1,000 words and cover the following:  1) the red flags, or risk factors, that should have been noted by an auditor in identifying and assessing the risks of material misstatement of Luckin’s financial statements, 2) the general ledger accounts involved in, or related to, the fraud, and 3) several ways in which Tableau, or another ADA, could be used as a risk assessment procedure or substantive procedure to detect the fraud. The memo is a professional document and not a research project, creative writing exercise, essay, or term paper.  You should approach it the way you would in practice in the circumstances described above and prepare a concise, technically accurate, and professional document with no spelling or grammar errors.  Departure from these instructions will reduce your score.  Exceeding the MAXIMUM of  1000 words will be severely penalized.

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