Beruflich Dokumente
Kultur Dokumente
11-23
d. There are potentially many factors that should heighten an auditor’s concern
about the existence of management fraud. The factors (1) of an intended public
placement of securities, and (2) management compensation dependent on
operating results are both factors that affect incentives to manipulate financial
statements. The auditor should be alert for other incentives, such as the
existence of debt covenants or planned use of stock to acquire another company
that may provide incentives to manipulate the financial statements.
11-24, continued
DEFICIENCY RECOMMENDATION
1. There is no basis for Prenumbered admission tickets should be issued upon
establishing the documentation payment of the admission fee.
of the number of paying
patrons.
2. There is no segregation of One clerk (hereafter referred to as the cash receipts
duties between persons clerk) should collect admission fees and issue
responsible for collecting prenumbered tickets. The other clerk (hereafter
admission fees and persons referred to as the admission clerk) should authorize
responsible for authorizing admission upon receipt of the ticket or proof of
admission. membership.
3. An independent count of paying The admission clerk should retain a portion of the
patrons is not made. prenumbered admission ticket (admission ticket stub).
4. There is no proof of accuracy of Admission ticket stubs should be reconciled with cash
amounts collected by the clerks. collected by the treasurer each day.
5. Cash receipts records are not The cash receipts should be recorded by the cash
promptly prepared. receipts clerk daily on a permanent record that will
serve as the first record of accountability.
6. Cash receipts are not promptly Cash should be deposited at least once each day.
deposited. Cash should not be
left undeposited for a week.
7. There is no proof of the Authenticated deposit slips should be compared with
accuracy of amounts deposited. daily cash receipts records. Discrepancies should be
promptly investigated and resolved. In addition, the
treasurer should establish policy that includes a review
of cash receipts.
8. There is no record of the The treasurer should issue a signed receipt for all
internal accountability for cash. proceeds received from the cash receipts clerk. These
receipts should be maintained and should be
periodically checked against cash receipts and deposit
records.
c. To uncover the fraud, the auditor could perform the following procedures:
1. Comparison of payee on checks to cash disbursements journal.
2. Follow up all outstanding checks that did not clear the bank during the
engagement until they clear the bank. Compare payee to cash
disbursements journal.