ACC 521 Lecture Notes - Lecture 6: Kens, Audit, Interest Expense
4 Oct 2014
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Document Summary
These procedures are offered without explanation of the information that might be discovered. For each one, a confirmation of the suspicion might arise. One definite instance is enough to justify proceeding with an investigation (real fraud examination), but failure to find confirming evidence can mean (1) nothing wrong is going on, or (2) the crook is too clever for the auditor. All of these procedures should be conducted with care not to falsely impugn the integrity of the people under investigation. a. b. c. d. e. Count the petty cash fund on friday morning in the presence of the supervisor and custodian of the fund. Then, perform a second surprise count friday afternoon before the custodian leaves work for the day. Ask the local better business bureau for reports on the eight new vendors. Ask the local chamber of commerce if they are members.
