Question: Mr. Ahmed is appointed as auditor in Peacock Company. During the audit, he observed that the sales manager is seriously involved in fraud. He

Mr. Ahmed is appointed as auditor in Peacock Company. During the audit,

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 1 Mr Ahmed should report the fraud to the companys board of directors 2 ... View full answer

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