Irregularities can be aroused within different accounting department at Apollo Shoes. To find out the irregularities, an audit program will be designed to achieve the task. Apollo Shoes has recognized that the major loss can be, due to irregularities in cash inflow and outflow and payroll. Therefore, audit program will be divided in three parts:
Cash
Accounts Payable
Payroll
The substantive procedures will be performed for the above outlined parts, so that the irregularities within each section is detected and an appropriate audit program will be designed for each department.
Substantive procedures include the following general categories of activity:
Testing classes of transactions, account balances, and disclosures
Agreeing the
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It also identifies the complainant’s goals. “The effectiveness of every fraud investigator, in pursuing either criminal or civil fraud investigations, is ultimately judged by how closely—and consistently—she reaches or exceeds her investigative goals.”
Once the goals and expectation are clearly identified, then the investigation phase started. Under the investigation phase the data is being collected for the results to be achieved. For financial fraud investigations large amounts of data and information needed to be collected. It involves the data gathering through database, interviewing, searches and collecting the documentary evidence. The evidence can be collected through email, faxes, chats and financial records. Through the advancement of technology there are vast means through which the evidence can be collected.
Interview witnesses the facial expression, which quiet make easy to collect the evidence. It opens the channel of communication. Documentary evidence is gathered which includes written statements (checks, invoices, bills, emails) and computerized document trails, any items that may be considered physical