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Doubt - Auditing

IPCC 549 views 2 replies

 

1. Is there any existence of fraud, if the cash used personally by the cashier is made up on demand by the management. ??

 

2. Investment recieved as security from an employee may be shown in the balance sheet as :

a) Investment

b) Security deposit

c) Investment deposited by employees

d) investments with nil value.

 

Kindly suggest

Replies (2)

1. First one is clear fraud. Making it up does not reduce the extent of fraud comitted by the cashier. He cannot ever take out cash for his own use, without permission of the authorities. If he takes out on suspense and if it is allowed in the company regulations then it might be ok.

2. I think you can show it as a security deposit.

Thanks a lot for suggestion


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