ACC705: Trimester 1 2018

Tutorial

Question1

Discuss the types of evidences that you could use to prove: (list as many as you can)

a. Sales/ accounts receivable fraud

Sales: Invoices and bank statement that the sales was made and payment was not
banked. In cash sales mostly CCTV footage if cash is been pocketed.

Accounts receivables: debtors ledger with approved credit applications. Approved Credit
limit for certain customers. Credit write offs without approvals. Adjusting discount after
payment has been received. Bank statement that the money received compared to
Accounts receivables is short.

b. Accounts payable/ expense fraud

Cheques and invoice copies for overpayments. Bank statement and invoices. Signatures
on the cheque copy if a signature fraud.

c. Payroll fraud
Ghost employee list with HR list. Bank account details of payments made. Time sheet
with the number of hours paid. Hourly rate from payroll and the contract the employee
signed with HR.

d. Cash misappropriation fraud

e. Inventory fraud
Inventory detail with the fiscal count report. Payment details to suppliers and stock
supplied.

Question2

Discuss the investigation procedures to detect: (list as many as you can)

1
 a. Sales/ accounts receivable fraud
Sales – checking sales by banking, sales by cash recived, bank statements and invoices,
dates of sale.

Accounts receivales; debtors ledger reconciliation, approved credit listing by debtors

name, sending statements to debtors for verifications, verify the write off

b. Accounts payable/ expense fraud

Invoices with the payments made verify, customers name with the payments made,
verify the signature if the cheue was signed by the approved signatory, verify if the
supplies was received for the payments been made. Check for the purchase order
reconciliation.

c. Payroll fraud
Check for ghost employees, check the rates of the employees by the signed contract,
verify the time sheet by the number of hours paid. Check if the payment from bank
statement with few previous months. Check for the Annual leave and sick sheet
payments.

d. Cash misappropriation fraud

Check receipts with cash payments. Reconcile the payments.

e. Inventory fraud
Stock take to verify the actual figures. Identify the stock physically with the inventory
sheet. Check the purchase order and transfer orders and approvals.

Question 3

Assume you are carrying out an investigation to detect any fraud. However, someone is holding
on to some significant information and is refusing to disclose it. What would you do in this
situation?

You can advise your supervisors, advise the management.

The End