{"id":968,"date":"2020-05-25T12:24:17","date_gmt":"2020-05-25T06:54:17","guid":{"rendered":"https:\/\/vdtc.co.in\/?p=968"},"modified":"2020-05-25T12:24:19","modified_gmt":"2020-05-25T06:54:19","slug":"an-investigation-into-various-frauds","status":"publish","type":"post","link":"https:\/\/vdtc.co.in\/?p=968","title":{"rendered":"An investigation into various frauds"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><strong>Cash receipts\u00a0<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Nature of duties of a person who is expected to have committed fraud.&nbsp;<\/li><li>Examine the line of responsibility among the various members of the staff.&nbsp;<\/li><li>Income received from different sources should be scrutinized.&nbsp;<\/li><li>Carbon copies of receipts marked duplicate should be scrutinized.&nbsp;<\/li><li>Examining the record of the small or negligible sources of income such as sales of scrap for the sale of waste paper.&nbsp;<\/li><li>Review of recoveries from customers and secondary parties along with deductions on account of cash discount.&nbsp;<\/li><li>Examine the receipts are serially numbered and all receipts have been accounted for.&nbsp;<\/li><li>In case of canceled receipts, its original copy should be examined and verified.&nbsp;<\/li><li>Inquiries should be made for an unreasonable cash discount.&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Cash payments\u00a0<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Ensure that all payments are properly authorized by the competent authority.&nbsp;<\/li><li>Acknowledgment by parties for payments has to be carefully scrutinized and extra care is required where a figure appears to have been erased or altered on such acknowledgment.&nbsp;<\/li><li>Payment by bearer cheques required careful examination.&nbsp;<\/li><li>Payments as regard wages should be examined for possible over-saling of wage sheets and entries regarding dummy workmen.&nbsp;<\/li><li>Payment for goods purchased should be reviewed so as to confirm that no payment has been made in respect of supplies that have not been received.&nbsp;<\/li><li>Any amount paid to partners\/directors should be specifically enquired due to the possibility of manipulations therein.&nbsp;<\/li><li>Any outgo as regards salaries and wages from petty cash books should be followed up and the petty cash book itself should be watched and totaled.&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Customers\u2019 ledger&nbsp;<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Trace the entries in the order book with the corresponding record in the sales day book.<\/li><li>Examine customer accounts to ensure that they have been properly debited at the appropriate amount.<\/li><li>The amounts are written off as bad that should be carefully examined.&nbsp;<\/li><li>Any unusual discount given to them should be thoroughly enquired into and written representation should be obtained from the appropriate authority in this connection.&nbsp;<\/li><li>Attention should be given to the teeming and lading frauds in such accounts.&nbsp;<\/li><li>Balance confirmation from customers should be obtained.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Suppliers\u2019 ledger&nbsp;<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The Bought journal should be vouched by reference to the goods inward book.&nbsp;<\/li><li>The amount has been correctly credited in respect of goods duly received or not.&nbsp;<\/li><li>Request the supplier to furnish statements of their accounts to find out whether or not any balance is outstanding or due.&nbsp;<\/li><li>Confirm that allowances and rebates given by them are correctly adjusted.<\/li><li>Stock defalcation&nbsp;<\/li><li>Physically check the quantities in stock and those shown by the stock book.&nbsp;<\/li><li>Cross-checking of good inward and outward registers along with the purchase and sales day book.&nbsp;<\/li><li>Use of expert advice wherever required.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Cash receipts\u00a0 Nature of duties of a person who is expected to have committed fraud.&nbsp; Examine the line of responsibility among the various members of the staff.&nbsp; Income received from different sources should be scrutinized.&nbsp; Carbon copies of receipts marked duplicate should be scrutinized.&nbsp; Examining the record of the small or negligible sources of income<\/p>\n<p><span class=\"more-wrapper\"><a class=\"more-link button\" href=\"https:\/\/vdtc.co.in\/?p=968\">Continue reading<\/a><\/span><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[],"class_list":["post-968","post","type-post","status-publish","format-standard","hentry","category-audit"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/968"}],"collection":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=968"}],"version-history":[{"count":1,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/968\/revisions"}],"predecessor-version":[{"id":969,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/968\/revisions\/969"}],"wp:attachment":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}