Basic Fraud Audit Pertemuan IX Matakuliah: F0184/Audit atas Kecurangan Tahun: 2007

Bina Nusantara Mahasiswa diharapkan mampu mengidentifikasi langkah-langkah dalam melakukan audit atas kecurangan Mahasiswa dapat melihat red flag atau symptom atas suatu kejadian didalam setiap transaksi Mahasiswa dapat melakukan audit atas kecurangan Learning Outcomes 3

Bina Nusantara Audit Step Audit Guidance Audit Plan Identify fraud scheme and red flag Outline Materi 4

Skimming Detection Some detection methods that may be effective in detecting skimming schemes are : –Receipt or Sales Level detection –Check conversion detection –Journal entry review 5 Bina Nusantara

Receipt or Sales Level Detection Key analytical procedures, such vertical and horizontal analysis of sales account Ratio analysis Detail inventory control procedures 6 Bina Nusantara

Check Conversion Detection Red flag arise when employee attempt to convert a stolen check. –Question of validity of the check –Dual endorsement is not allowed –Canceled checks with dual endorsement should be cutinized –A forget endorsement is discovered –Employee has opened a bank account with a name similar to the victim company –An alteration of check payee or endorsement is discovered –etc 7 Bina Nusantara

Journal Entry Review Journal entry that should be examine: False credit to inventory to conceal unrecorded or understated sales Other write-off of inventory for reason of lost, stolen or obsolete product Write-off of account receivable account Irregular entries to cash account 8 Bina Nusantara

Skimming Prevention Received of sales level control Check conversion control General control Skimming controls 9 Bina Nusantara

Received of Sales Level Control Internal control procedures for received of sales Management communication to employee 10 Bina Nusantara

Check Conversion Control Work in cooperatives effort with the bank Check tampering and conversion control 11 Bina Nusantara

General Control Policy and procedures of general control of sales entry and general ledger access will cover: –Appropriate segregation of duties –Transaction must be properly record –Proper safeguard measures –Independent reconciliation 12 Bina Nusantara

Skimming Controls Red Flag for detecting : Mail open by someone independent Delivery of unopened business mail prohibited to employee Lock box used Cash receipt pre number Check reconciliation Cash receipt deposit daily Employee who handle receipt bonded 13 Bina Nusantara

Cash Larceny Theft of cash from the register Other larceny of sales and receivables Cash larceny from the deposit 14 Bina Nusantara

Theft of Cash from the Register Personal Check Reversing transaction Altering cash counts Destroying register tapes 15 Bina Nusantara

Theft of cash from the register modus 16 Bina Nusantara

Other Larceny of Sales and Receivables Post all record but stolen the money received and : –Plan to pay the money back –Make unsupported entries –Destroy all the record 17 Bina Nusantara

Other Larceny of Sales and Receivables Modus 18 Bina Nusantara

Cash Larceny from the Deposit Deposit lappingDeposit in transit 19 Bina Nusantara

Cash Larceny from the Deposit Modus 20 Bina Nusantara

Cash Larceny Detection Receipt recording Analytical review Register detection Cash account analysis 21 Bina Nusantara

Receipt Recording Depth Analysis for : Mail and register receipt point Journalizing and recording of receipt The security of the cash from receipt to deposit 22 Bina Nusantara

Analytical Review Analyzing relationship between sales, cost of sales and return and allowances can detect inappropriate refunds and discount. 23 Bina Nusantara

Register Detection Access to the register must be closely monitored Independent person for preparing register count sheet and aggree them to register total Popular concealment methods must be watched for. Complete register documentation and cash etc 24 Bina Nusantara

Cash Account Analysis Reviewing and analyzing all journal entries made to account cash 25 Bina Nusantara

Cash Larceny Prevention Segregation of duties Assigment rotation and mandatory vacation Surprise cash count and procedures supervision Phisical security of cash 26 Bina Nusantara