Semester Fall 2018 Fundamentals of Auditing (ACC311) Solution of Assignment

Discuss Accounting, Banking & Finance Assignments in this section.
Post Reply
User avatar
Posts: 177
Joined: Fri Dec 22, 2017 8:10 am
Location: Lahore
Has thanked: 6 times
Been thanked: 7 times
Status: Offline

Semester Fall 2018 Fundamentals of Auditing (ACC311) Solution of Assignment

Post by ALI RAZA » Thu Dec 13, 2018 7:02 am

Solution: (2 Marks for Each relevant point)
1. Possible Frauds in Cash and Bank (5x2= 10 Marks)
 Practice of vouchers for salary advances or payments to employees already dismissed.
Prior to dismissal, knowing that, by tradition, certain cash breaks will be forgiven in
the near future.
 Refresh documents of expenses already paid in an attempt to receive them again.
 False beating in the box (digging cash from the business without the consent of
employer), carrying balance smaller than the reality, taking over the difference in the
next hit.
 Forging cash transfers from cash to bank deposits, reducing cash balance and
appropriating the corresponding amount.
 Double downloading of bank debit notices, reducing the current balances and the
differences in the next deposit.
2. Possible Frauds in Sales and Accounts Receivables (3x2= 6 Marks)
 Settlement of a customer account with a supposed return of goods or diversion of the
cash received.
 Replacement of an authentic duplicate with a false one, with the true one being client
with discharge and holding the other as insolvent.
 Write-off a customer account as insolvent, when in reality the customer has already
settled their debt (this fraud can count even with the support of charging notices, for
example claiming that the drawee is absent then moved to the category of defaulters)
 Debiting the customer account with less amount of sales and retaining the difference in
favor of the perpetrator
3. Possible Frauds in Inventories (2x2= 4 Marks)
 Replacement of inventory units and fake labeling at the inventory kept in stock rooms
 Notes of entries for quantities less than the real ones (right value and wrong quantity)
and vice versa
 Disposal of goods as obsolete when they were without any defect of quality.
 Remove some of the materials received in enclosed boxes by re-locating them. The
difference will only be verified in the future, by the production, suspecting of the

Post Reply

Last 10 Members Who Visited This Topic

User avatar ALI RAZA (2)

  • Similar Topics
    Last post

Who is online

Users browsing this forum: No registered users and 1 guest