Thank you for the opportunity to help you with your question!
Being alert to warning signs is one way to be proactive and identify fraudulent activity. Some of the most common red flags at the corporate level include:
significant change in reported income or earnings;
unreported business income;
inappropriate accounting methods;
investments with related parties;
investments in unrelated assets and projects;
lack of thorough employee screening;
lack of separation of duties (purchasing, inventory, accounts payable, bank reconciliation, etc.);
employees/partners with lavish spending habits (i.e., increase in trips/vacations – how are they financed); and
employees/partners with financial difficulties and pressure.
Audit Procedures can include
Please let me know if you need any clarification. I'm always happy to answer your questions.
Content will be erased after question is completed.