You are the audit senior in charge of the audit of Swandive Co, and have been...
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You are the audit senior in charge of the audit of Swandive Co, and have been informed by your audit manager that during the year a fraud occurred at the client. A payroll clerk set up fictitious employees and the wages were paid into the clerk's own bank account. This clerk has subsequently left the company, but the audit manager is concerned that additional frauds have taken place in the wages department. Required: Describe procedures which should be undertaken during the audit of wages as a result of the manager's assessment of the increased risk of fraud. (5 marks) You are the audit senior in charge of the audit of Swandive Co, and have been informed by your audit manager that during the year a fraud occurred at the client. A payroll clerk set up fictitious employees and the wages were paid into the clerk's own bank account. This clerk has subsequently left the company, but the audit manager is concerned that additional frauds have taken place in the wages department. Required: Describe procedures which should be undertaken during the audit of wages as a result of the manager's assessment of the increased risk of fraud. (5 marks)
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Answer rating: 100% (QA)
Internal control for payroll must be well structured to reduce payroll frauds manage payment of cash ... View the full answer
Related Book For
Auditing A Practical Approach
ISBN: 978-1119566007
3rd Canadian edition
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren
Posted Date:
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