You are the audit senior in charge of the audit of Malaika Company and have been  informed by your audit manager that during the year a fraud occurred at the client.  A payroll clerk set up fictitious employees and the wages were paid into the clerk’s  own bank account. This clerk has subsequently left the company, but the audit  manager is concerned that additional frauds have taken place in the wages  department.   Required:  i) Describe six procedures which should be undertaken during the audit of wages  as a result of the manager’s assessment of the increased risk of fraud.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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You are the audit senior in charge of the audit of Malaika Company and have been 
informed by your audit manager that during the year a fraud occurred at the client. 
A payroll clerk set up fictitious employees and the wages were paid into the clerk’s 
own bank account. This clerk has subsequently left the company, but the audit 
manager is concerned that additional frauds have taken place in the wages 
department. 
 Required: 
i) Describe six procedures which should be undertaken during the audit of wages 
as a result of the manager’s assessment of the increased risk of fraud.

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