Problems while doing audit.

Greatings to all.

I would like to know, Did these transactions result in Fraud or not and which circumstances would be there which leads to these kinds of situations.

1. Two invoices bearing same number.

I found two Invoices sharing same invoice number which were billed to two different parties with different amounts. When I asked the same with accountant, he fumbled and was not able to address the problem.

2. Invoice Predated in tally. Invoice value 15 lacs.

A Sale Invoice was orginally made in october and was shown in tally in August So it was apparent as the series of bill was not matching with other bills. Accountant clarifies that, We were in doubt as if this transaction will lead to a bad debt or expected a low recovery of amount. As a result to negotiate with the party invoiced it earlier. However I found that bill was invoiced in october itself and was shown in september.

Please suggest will these transactions become significant in nature and leads to fraud. Did it reflects any bad intention.   

Replies (2)

Hi

Here Three things  need to be understood.

1. Invoice having the same number.

2. accounted it differently as dated in invoices

3. Amounts involved is 15 Lakhs

 

As the Explanation given by the accountant is inadequate for our purpose. Further communicate in writing to those charged with governace and ask for clarification.

If you doubt the transaction is fake or fraud transaction. investigate on it i.e in depth audit.

if still you found to be fake then, qualify the report.

Regards

Anil Reddy

Dear friend

Find out the following:

1) Check the monthly Sales Tax Return and the Turnover for the particular month whether it tallies with the Sales Book.

2) Find out the  Debtor's Ledger for the suspected Party & insist for Confirmation of Balance from the Party.

As an Auditor you may also insist from the Customer stating the involvemnt of Rs: 15 L and the natur of Payment & Transaction appeared in their Books.

After ascertaiing all the required relevant informations and seek justification from the Accountant & prepare the Audit Report attach all the documentary evidances to forward the same to the Management.

All the best

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