Mr. Ahmed is appointed as auditor in Peacock Company. During the audit, he observed that the...
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Mr. Ahmed is appointed as auditor in Peacock Company. During the audit, he observed that the sales manager is seriously involved in fraud. He observed that the company understated its sales. The actual sales of the company are OMR 450,000 but they were under stated as OMR 400,000. Required: Q1. What should he do to resolve this fraud? (1.5 Marks) Q2. What is the impact of a decrease in sales on the profit of the company? (1.5 Marks) Mr. Ahmed is appointed as auditor in Peacock Company. During the audit, he observed that the sales manager is seriously involved in fraud. He observed that the company understated its sales. The actual sales of the company are OMR 450,000 but they were under stated as OMR 400,000. Required: Q1. What should he do to resolve this fraud? (1.5 Marks) Q2. What is the impact of a decrease in sales on the profit of the company? (1.5 Marks)
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Answer rating: 100% (QA)
Answer 1 Mr Ahmed should report the fraud to the companys board of directors 2 ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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