As the engagement Senior, you are responsible for completing the audit of the revenue cycle for Best City, a specialty retailer of consumer electronics, home office products, entertainment software, appliances and related services.

Best City (BC) is headquartered in Richmond, VA with over 450 retail outlets across the Eastern and Midwestern United States. The Company operates retail stores and successful websites under the brand names Best City and BC (www.BestCity.com and www.BC.com). Total sales for the fiscal year ending 12/31/16 were $5.4 billion; $4.3 billion were generated by its retail stores, while $1.1 billion were generated by its e-commerce websites.

Unfortunately, as part of year-end cut-off testing, you notice a few potential red flags for fraud within some of the website sales transactions that you believe should be reported to the audit manager and partner.

REQUIRED: Please briefly discuss any red flags for fraud within the following documents (including the type of fraud scheme suggested by each red flag).

NOTE: Assume no sales tax is charged for online sales.

Best City, Inc. 8945 Main Street	Uniform Bill of Lading (Domestic)	Shipper No. 315AD	Date: 12/29/2016	Document No. 264889
Richmond, VA	FOB Destination
23126	TO: Peter Venable	Vehicle #7	Carrier Name (2 day deliv.)	Old Dominion
	264 Mason Street; Columbia, SC 29201
Quantity Shipped 2	Phillips 25 inch LCD Monitor	Weight 6.2 lbs	Rate $1.53 per lb	Charge $9.49
1	HP EliteBook 1040 Laptop	15.6 lbs	$1.53 per lb	$23.87
				Total $33.36

Best City, Inc. 8945 Main Street	Uniform Bill of Lading (Domestic)	Shipper No. 389RB	Date: 12/29/2016	Document No. 264891
Richmond, VA	FOB Destination
23126	TO: Chris Perry	Vehicle #8	Carrier Name (2 day deliv.)	Old Dominion
	174 Salem Way; Fairfax, VA 22031
Quantity Shipped 1	HP OfficeJet Pro 8720 Printer	Weight 5.3 lbs	Rate $1.52 per lb	Charge $8.06
				Total $8.06

Best City, Inc. 8945 Main Street	Uniform Bill of Lading (Domestic)	Shipper No. 392RB	Date: 12/30/2016	Document No. 264893
Richmond, VA	FOB Shipping Point
23126	TO: Sylvia Creel	Vehicle #9	Carrier Name (2 day deliv.)	Old Dominion
	7387 Tristram Drive; Pfafftown, NC 27040
Quantity Shipped 2	Dell Inspiron 17.3 inch Laptop	Weight 9 lbs	Rate $1.51 per lb	Charge $13.59
1	55 inch LG TV	34 lbs	$1.51 per lb	$51.34
				Total $64.93

Best City, Inc. 8945 Main Street	Uniform Bill of Lading (Domestic)	Shipper No. 318AD	Date: 1/5/2017	Document No. 264921
Richmond, VA	FOB Destination
23126	TO: Scott Ziegler	Vehicle #6	Carrier Name (2 day deliv.)	Old Dominion
	381 Amazon Way; Athens, GA 41040
Quantity Shipped 1	MacBook Pro 15.4 inch	Weight 13 lbs	Rate $1.55 per lb	Charge $20.15
1	65 inch Sony TV	43 lbs	$1.55 per lb	$66.65
1	Garmin DriveSmart 61 LMT	1.4 lbs	$1.55 per lb	$2.17
1	HP OfficeJet Pro 8710	5.2 lbs	$1.55 per lb	$8.06
				Total $97.03

Best City, Inc. 8945 Main Street	Charge Sales Invoice (Domestic)	Credit Terms n/30	Date: 12/31/2016	Document No. 318519
Richmond, VA
23126	Customer ID: VENAB0012			Bill of Lading
	Name: Peter Venable			No. 264889
Quantity Shipped 2	Phillips 25 inch LCD Monitor	Unit Price 371.00	Discounts 0.00	Extension $742.00
1	HP EliteBook 1040 Laptop	1,239.00	0.00	$1,239.00
				Total $1,981.00

Best City, Inc. 8945 Main Street	Charge Sales Invoice (Domestic)	Credit Terms n/30	Date: 12/31/2016	Document No. 318522
Richmond, VA
23126	Customer ID: PERRY1433			Bill of Lading
	Name: Chris Perry			No. 264891
Quantity Shipped 1	HP OfficeJet Pro 8720 Printer	Unit Price 285.00	Discounts 0.00	Extension $285.00
				Total $285.00

Best City, Inc. 8945 Main Street	Charge Sales Invoice (Domestic)	Credit Terms n/60	Date: 12/31/2016	Document No. 318548
Richmond, VA
23126	Customer ID: CREEL7291			Bill of Lading
	Name: Sylvia Creel			No. 264893
Quantity Shipped 2	Dell Inspiron 17.3 inch Laptop	Unit Price 1,324.00	Unit Discount 264.80	Extension $2,118.40
1	55 inch LG TV	862.00	172.40	$689.60
				Total $2,808.00

Best City, Inc. 8945 Main Street	Charge Sales Invoice (Domestic)	Credit Terms n/60	Date: 12/31/2016	Document No. 318525
Richmond, VA
23126	Customer ID: ZIEGL0005			Bill of Lading
	Name: Scott Ziegler
Quantity Shipped 1	Macbook Pro 15.4 inch	Unit Price 1,460.00	Discounts 0.00	Extension $1,460.00
1	65 inch Sony TV	1,980.00	0.00	$1,980.00
1	Garmin DriveStart 61 LMT	212.00	0.00	$212.00
1	HP OfficeJet Pro 8710	147.00	0.00	$147.00
				Total $3,799.00