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Extended procedures are specific responses to fraud risk factors and are used when auditors suspect fraudulent activity related to cash. These procedures go beyond routine audit tests and are designed to uncover fraud schemes.
1. Key Extended Procedures for Detecting Fraud
1. Key Extended Procedures for Detecting Fraud
2. Examples of Cash Fraud Cases
2. Examples of Cash Fraud Cases
Rita Crundwell Case: The former comptroller of Dixon, IL, stole $53 million by creating false invoices and diverting cash into a personal account.
Check Kiting Fraud: A company moved checks between bank accounts to falsely inflate cash balances, which was uncovered through interbank transfer schedules.
Saks Fifth Avenue Identity Theft: Employees used stolen customer information to purchase luxury goods and resell them.
By using extended fraud detection procedures, auditors can uncover hidden fraud schemes and strengthen cash controls.
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