Carolina Gourmet Pizza Investigative Audit

Assume you work for Winkin, Blinkin, and Nodd as an investigative auditor, and you have been assigned to audit Carolina Gourmet Pizza, a chain of pizzerias located in the Charlotte, North Carolina metropolitan area. After having visited each location and studying the accounting records, you have found that a large percentage of payments come from a handful of customers and are in cash. In your initial post, please address the following questions:

  • What red flags, if any, does this raise for you as the auditor?
  • How would you approach the owners of the pizza chain about this suspicious information?
  • What next steps should you take for this audit?

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