DETECTING FRAUD – PLANNING AN AUDIT See the “The Leslie Fay Companies” case (Links to an external site.) Prepare common-sized financial statements for Leslie Fay for the period 1987- 1991. For that same period, compute for Leslie Fay the ratios shown in Exhibit 2.In addition to the data shown in Exhibit 1 and Exhibit 2, what other financial information would you have obtained if you had been responsible for planning the 1991 Leslie Fay audit? As a result of this financial review, what financial statement items do you believe should have been of particular interest to BDO Seidman during that firm’s 1991 audit of Leslie Fay? Explain.
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