PG1995
Active Member
Hi
Do you know how account auditing is done? I'm not talking about auditing of bank account because that would be complex. Some days ago someone was saying that auditing was being done in their company and auditors come every six months to do the auditing. That's not a big company as far as I know. Suppose, the company had renovation like paint, new furniture etc. The person who was responsible for this renovating task used some of the company's funds fraudulantly. I will explain how. Suppose, in the records it was shown that furniture was bought for $10,000 although in reality it only cost $5,000. Some of the money wa also paid to the furniture company so that they can substantiate the 'falsified' figure of $10,000. The same goes for other things such as funds spent on new paint. How would auditors know that there have been any irregularities in the funds? If they won't be able to trace the fraud, then what's the use of having them? Please edify me on this. Thank you.
Regards
PG
Do you know how account auditing is done? I'm not talking about auditing of bank account because that would be complex. Some days ago someone was saying that auditing was being done in their company and auditors come every six months to do the auditing. That's not a big company as far as I know. Suppose, the company had renovation like paint, new furniture etc. The person who was responsible for this renovating task used some of the company's funds fraudulantly. I will explain how. Suppose, in the records it was shown that furniture was bought for $10,000 although in reality it only cost $5,000. Some of the money wa also paid to the furniture company so that they can substantiate the 'falsified' figure of $10,000. The same goes for other things such as funds spent on new paint. How would auditors know that there have been any irregularities in the funds? If they won't be able to trace the fraud, then what's the use of having them? Please edify me on this. Thank you.
Regards
PG