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Which of the following factors are likely to be identified as a fraud factor by the auditor?

A) Bank reconciliation statement includes deposits in transit

B) Plant and machinery is sold at a loss

C) Political contribution by the company

D) The company is planning a initial public offer of quality shares to raise additional capital for expansion

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Question ajoutée par Mir Mujtaba Ali , Internal Audit Manager , Confidential
Date de publication: 2015/02/08
Utilisateur supprimé
par Utilisateur supprimé

Political contribution by the company, if a Tax Exemption valid receipt can be provided will validate the contribution.  Contributions to gain tender preference over other tenderers will be a deviation from legislation and indicate management lacks integrity.  See third paragraph regarding risk.

 

 

Deposits in transit that can't not be traced to proof of payment (electronic funds transfer) from customer.

 

 

Both factors, deposits in transit and political contribution would be items that would raise risk, and audit procedures will need to be targeted at these to mitigate the risk.  The political contribution is the more severe risk, as it could be indicative of risk at financial statement level.

Utilisateur supprimé
par Utilisateur supprimé

My pick is, Option C!!!!!!

حسين محمد ياسين
par حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

c answer <<<<<<<<<<<<<<<<<<<<<<<<<<<<<

Kaamila Tahseen
par Kaamila Tahseen , Change Management Team Manager , cognizant technology solutions

Political contribution .......

FITAH MOHAMED
par FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

C)..>>>>>>>>>>>> Political contribution by the company

Vinod Jetley
par Vinod Jetley , Assistant General Manager , State Bank of India

C) Political contribution by the company

Fawad Aziz
par Fawad Aziz , Audit And Accounts Supervisor , Deloitte Touche - Pakistan & Qatar

Political Contribution by the company are likely to be identified as a fraud factor by the auditor.

Hany Sabry
par Hany Sabry , Finance Manager , Coffee Adress

Agreed with all answers, i would like to say that the correct answer is C

Bilal Khan
par Bilal Khan , Senior Tax Accountant , Finvesco Limited

Option C spot on, Now a days when politics is considered nothing can go right.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Option (A)  >>>>>>>>>>>>>>>>>  Bank reconciliation statement includes deposits in transit.

Abd ElRahman Mohammed Idris Mohammed
par Abd ElRahman Mohammed Idris Mohammed , Internal Audit Manager , Kenana Sugar Company Limited

Option ( C ) .......................

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