Question

Make recommendations about when to test for further material fraud while auditing

Answer 1

When the auditing is conducted auditors must check the relevant accounts and its trueness to be sure of the occurrence of the transactions. If there is a material mismatch being conducted, the weakness in accounts will be caught either in the form of embezzlement or fraud committed by the persons maintaining the accounts. While checking the accounts if it’s found that vouchers are not showing the desired results then there lies a chance of material weakness in the maintenance of accounts. Along with that, bank statements, invoices of transactions have to be checked by the auditing team if there lies any error that has to be investigated thoroughly to find out whether any material fraud has been committed by the company or not.