Following the disappearance of the finance director, your investigations have indicated that sales remittances amounting
Posted: Mon May 02, 2022 9:06 am
Following the disappearance of the finance director, your
investigations have indicated that sales remittances amounting to
$50,000 have been misappropriated. In addition, paid cheques, petty
cash records and certain payment vouchers are missing. Management
was reluctant to see investigations continue, as they saw their
main priority being to restore the liquidity of the company (the
fraud has not caused the liquidity problem). Moreover upon several
reminders, the information related to Other Receivables has not
provided to auditor by management, other receivables are reported
at $75,000 in Financial Statements.
Assuming that you are Partner/Audit Manager of said Audit Firm.
Please discuss the reporting implications (on audit report) of
above mentioned scenarios.
investigations have indicated that sales remittances amounting to
$50,000 have been misappropriated. In addition, paid cheques, petty
cash records and certain payment vouchers are missing. Management
was reluctant to see investigations continue, as they saw their
main priority being to restore the liquidity of the company (the
fraud has not caused the liquidity problem). Moreover upon several
reminders, the information related to Other Receivables has not
provided to auditor by management, other receivables are reported
at $75,000 in Financial Statements.
Assuming that you are Partner/Audit Manager of said Audit Firm.
Please discuss the reporting implications (on audit report) of
above mentioned scenarios.