Assignment Background: An allegation recently surfaced against NWSupplies, Inc. ("The Company"], a supplier of office supplies and equipment, which claimed that management has been pushing their salesmen to close deals by quarter end with sales contracts allowing for weak return policies. Your colleagues at Zeus LLP ("Zeus"), a boutique forensic accounting firm located in Washington, D.C., have already started reviewing the allegation to see if it has any merit. Thus far, the team has begun collecting hard drives, reviewing emails, requesting documentation from the client, and analyzing financials. In doing so, they have identified a transaction which could substantiate the allegation. The transaction occurred near the close of the 3" quarter, with MDJ Sales - one of the company's largest retail purchasers. To date, the team has found the following support related to the sale to MDI:
1. Emails (Appendix 1) - After utilizing Zeus's data keyword search tool, the team discovered a couple "Hot Doc" emails. The emails identified include 1) an email between the sales manager and salesman, and 2) an email thread between the controller and the CFO.
2. Journal Entry Screenshot (Appendix 2)- The team received access to the accounting system and located the journal entry for the MDJ transaction.
3. Sales Invoice (Appendix 3) - The team found a copy of the invoice for the sale in question with a sales date of 9/27/19. Required Prepare a financial expert witness report of 2000 words.
Their report should contain an introduction to explain:
a) who they are and their professional role;
b) the parties involved;
c) the scope of financial analysis and evidence-based opinion.
The details contained in the introduction of the report can be specific or general, however, you are required to efficiently explain the evidentiary calculations and suggest conclusions for their clients, opposing counsel and the trier-of-fact.