Relational database software can be used very effectively in detecting fraud in
ID: 2375108 • Letter: R
Question
Relational database software can be used very effectively in detecting fraud in the account- ing information system. Use your school%u2019s library resources to find and read R. Marden and R. Edwards, %u201CInternal Controls for the Small Business: Skimming and the Fraud Triangle,%u201D Internal Auditing (January/February 2005). If Pinewoods of the Blue Ridge Mountains (the company discussed in the article) captured transactions in a relational database based on a REA model, what queries and reports would you construct in an attempt to discover the fraud?
Explanation / Answer
Queries:
What routine reports are considered as director's meetings and do these prima facie provide information for effective and efficient control of the business.?
2. what interest do directors take in R&D.?
3. Are the principles of management by exception applied to management information.?
4. Given that the directors ultimately contol the cash flow in the sense of receiving reports and acting thereon, who actually controls the cash flow on a day to day basis?
5. the fixed asset shown in balance sheet whether they are actually in existence or not in the date of balance sheet.?
6. whether the fixed asset is in the name of the owner or not.?
Reports to be checked to deterct fraud:
1. Internal audit report
2. statement of Balance sheet
3. Profit and loss account.
4. statutory auditors report.