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Mr Peter is working as a Purchases Journal clerk in a small firm located on the Gold Coast. David is his friend, who works as an Accounts Payable Ledger clerk in the same firm. Peter periodically enters fictitious acquisitions. After creating a fictitious purchase, Peter notifies his Accounts Payable Ledger clerk. David enters these transactions in his ledger. When the payables are processed, the payment is mailed to the non-existent supplier's address, a post office box rented by Peter. He deposits the cheque in an account he opened in the non-existent supplier's name.
Required:
Problem a) Discuss two (2) procedures that can be applied to find Mr Peter's fraud.
Problem b) Discuss indicators of personal fraud that can reveal the possibility of such fraud.
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