Reference no: EM133162940

Question - Explain briefly at least one potential fraud for the following transaction cycles - be it fraudulent financial reporting or misappropriation of assets, and possible specific audit procedures to be used to detect fraud:

1. Sales and Collection cycle

2. Purchase to pay cycle

3. Payroll Transaction cycle

For example, in inventory theft - a group of employees is appropriating inventory for personal use. Specific audit procedures are inspection of records and documents, inspections of tangible assets, and inquiry. Records and documents like sales invoices, and general ledger should match the numbers of inventory in the warehouse. (Explain thoroughly)