Documentary Evidence
Our text indicated there are three major categories of evidence can be documentary evidence including electronic data (i.e. would be bank statements, any written confirmation from vendors/customers, emails, invoices, etc.) physical evidence (inventory count, fixed asset verification, etc.) Statements of witnesses/parties involved. Having statements or witness is a good thing as proof i.e. would be a car accident. Should you need to go to court for damage’s or medical whatever the case maybe, having the witness statements helps in your defense. Such fraud detector or a CPA can use all or a combination of these types of evidences to prove the fraud. Documentary evidence is considered most important because it a written proof of events that
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An employee, in any organization, they are entitled to claim reimbursements for office expenses up to a certain limit according to the IRS. These expenses and their limits are clearly specified in the policies of the company and IRS standards. According to their policy; the bills are submitted by Mary Chenet for reimbursements that have been claimed will have to be checked thoroughly. If the volume of bills is high, the auditor can pick up random samples and investigate the same. The scope of sampling can be extended to obtain full proof evidence. Further, the approving authority (if any) for such bills should also be questioned. If the authority of approving bills is with another person (which should ideally be the case), it may be possible that Mary's supervisor is also involved in the fraud which may require further investigation.
However, while performing the investigation, it would be important for the auditor to distinguish between the office expenses (as per the limits approved) and personal expenses of Mary Chenet. Genuine office expenses (if any) incurred by Mary Chenet will not be included in the amount of loss resulting from fraud.
In conclusion an auditor needs to understand the business first. Once they have the concept down they are able to perform there audit depending on the client’s narrative. Having the understanding of the client will help the
An employee, in any organization, they are entitled to claim reimbursements for office expenses up to a certain limit according to the IRS. These expenses and their limits are clearly specified in the policies of the company and IRS standards. According to their policy; the bills are submitted by Mary Chenet for reimbursements that have been claimed will have to be checked thoroughly. If the volume of bills is high, the auditor can pick up random samples and investigate the same. The scope of sampling can be extended to obtain full proof evidence. Further, the approving authority (if any) for such bills should also be questioned. If the authority of approving bills is with another person (which should ideally be the case), it may be possible that Mary's supervisor is also involved in the fraud which may require further investigation.
However, while performing the investigation, it would be important for the auditor to distinguish between the office expenses (as per the limits approved) and personal expenses of Mary Chenet. Genuine office expenses (if any) incurred by Mary Chenet will not be included in the amount of loss resulting from fraud.
In conclusion an auditor needs to understand the business first. Once they have the concept down they are able to perform there audit depending on the client’s narrative. Having the understanding of the client will help the