Internal Control and Fraud Detection

Compare ending balances per the bank statements to the ending balances on the bank reconciliation.

cash transactions are recorded in the correct accounting period

recorded in books exists

Confirmation is a process whereby the auditor can obtain corroborating evidential matter from an independent party which is outside the organization.

tracking source documents from their creation

interviewing appropriate personnel at all organizational levels.

examination of pertinent documents

have truly occurred

Higher commissions which are not based on increased sales.

taking of something of value