Professional Documents
Culture Documents
1 77
1 77
Case studies
ICAI Vadodara 2013
Chetan Dalal
A WARM WELCOME TO
ALL
Thank you to Vadodara Branch
and members of ICAI
From Chetan Dalal
Very Important to
remember:
Agenda
1.
2.
3.
4.
5.
Forensic Audit-
1.
2.
3.
4.
2. MANIPULATIONS AND
FRAUD IN SPREADSHEETS
Example using Excel Sheets
An illustration of presentation
fraud in a spreadsheet
Test of IMPOSSIBILITY:
identify events which are not
possible and check them out
For example: Can be applied on volume of
stocks in a warehouse or production with
actual machine capacity
Juxtaposition test
Test of absurdity or
reasonableness
Think of events which may be
possible but not probable. Can a
person arrive and depart at exactly
the same time every day ? If
smart/swipe card analysis shows
such a pattern it is likely to be a
phantom employee
Common accounting
manipulations likely in
Cash Contras
Stock in transit
Accounting favours to debtors
Non reversal of stale cheques to create
secret reserves
Not redepositing unpaid cash expenses
such as wages, reimbursements etc
Recycling of petty cash advances or IOUs
Bombay Br
Purchases
Staff Recruitment & Training
Delhi Br
2076689
Kolkatta
1427286
Chennai
BOM-ser
Lucknow
Pune
1041919
576109
1972854
501215
1017578
365887
1723652
547304
1993621
282293.4
493068
428969
313147
468415
241603.3
409246
473345
437968
381032
278153
875936
214604.3
363513
420449
379100
329817
240766
360145
185759
314653
363936
Travelling Exps
301765
262536
191651
286677
147864.9
250465
289694
116954
101750
74277.5
111106
57307.46
97071.8
112276
Electricity Charges
120000
104400
76212
114000
58800
99600
115200
Communication - FBT
106953
93049.1
67925.9
101605
52406.97
88771
102675
Discounts given
105873
92109.5
67239.9
100579
109023
87874.6
101638
Discounts on sales
Vehicle Running & Main - R
206902
180005
131403
249529
196557
217090
101382
158476
171729
237053
198626
122269.2
Subscription Charges
143399
91072.7
136229
70265.51
119021
137663
124757
250000
50000
125000
1437477
500000
5. UNUSUAL METHODS OF
INVESTIGATING
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Case Study
the door
They stole case worth
staff, neighbourhood
IDEA_DATA.xls
Relevance
40
Scrutiny
of individual parties
account is humanly ineffective.
It
highlights
all
unusual
fluctuations
which
may
be
stemming from frauds or errors
What is RSF ?
41
RSF =
Largest Number
Second Largest Number
42
43
Types of frauds
that RSF can unearth
Data entry mistakes
Alterations in decimals
Wrong coding with masters (vendors, customers,
employees, etc.)
Revenue items charged to capital accounts and
vice versa
Excess payments in payroll
Useful algorithm
Luhns algorithm
For verifying correctness of credit cards
and other cards which have been
generated using the check sum digit
OPEN SESSION.
THANK YOU
www.chetandalal.com
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