Inventory is an asset that is commonly subject to fraud. In one famous case in the United States, managers used fictitious inventory purchases to perpetuate a massive inventory fraud. MiniScribe...

Inventory is an asset that is commonly subject to fraud. In one famous case in the United States, managers used fictitious inventory purchases to perpetuate a massive inventory fraud. MiniScribe Corporation was a company that manufactured and sold computer equipment. The fraud involved placing bricks in the boxes designed for merchandise, shipping them to customers and recording a sale when the box was shipped. 1 What would be the effect on the income statement and the balance sheet of shipping bricks and recording those shipments as sales? 2 Would this fraud be effective in the long run?