The investigator should enquire into the reasons of defalcation. Omission of receipts, theft of income, short carryover, double payments, and overcastting payments, personal can be charged to business. The exact reason may be examined expenses by the experts. The investigator can check the internal control system in operation.
The week system can lead towards fraud. The division of duties, authority and recording of transactions should be noted. The duties of responsible employees should be analyses to trace weakness.
The investigator can verify cash. He can count the cash himself. He can examine cash book balance. He must see that cash in hand is in agreement with cash book. He can ask the bank to provide balance of cash at bank. The investigator can check the cash book received from various sources. The counterfoil of receipts must be compared with cash book entries. The amount paid into bank can be checked.
The investigator can check the cash payments. There may be over payment, double payment. The vouchers may be missing. There may be alteration of vouchers. The investigators should vouch sales. The cash sales and discount on sales should be checked. The provision for bad debts may be calculated.
The week system can lead towards fraud. The division of duties, authority and recording of transactions should be noted. The duties of responsible employees should be analyses to trace weakness.
The investigator can verify cash. He can count the cash himself. He can examine cash book balance. He must see that cash in hand is in agreement with cash book. He can ask the bank to provide balance of cash at bank. The investigator can check the cash book received from various sources. The counterfoil of receipts must be compared with cash book entries. The amount paid into bank can be checked.
The investigator can check the cash payments. There may be over payment, double payment. The vouchers may be missing. There may be alteration of vouchers. The investigators should vouch sales. The cash sales and discount on sales should be checked. The provision for bad debts may be calculated.
