ABC Club has the following categories of members: PARTICULARS COUNT Maximum Limit (a) Honorary 200 NA (b) Permanent 1400 1600 (c) Members' children 2400 NA (d) Corporate 100 125 (e) Temporary 500 600 The Permanent Member

CS Professional · Internal and Forensic Audit · PYQS · June 2024
ABC Club has the following categories of members: PARTICULARS COUNT Maximum Limit (a) Honorary 200 NA (b) Permanent 1400 1600 (c) Members' children 2400 NA (d) Corporate 100 125 (e) Temporary 500 600 The Permanent Membership is in great demand and there is a waiting list of 20 years for members after application. The limit of 1600 members includes honorary members. For members' children, there is no waiting list and on attaining the age of 21, membership is automatic. The management is of the view that there is a fraud in this area. You have been asked to verify the records of members' children. What methodology will you adopt ?

Answer & Explanation:

100% verification of all applications with supporting original documents during period under review. Evidence to be obtained regarding relationship of children and member. All signatures of parents to be verified with the dates when they became members and also verify from photographs and signature verify with authorized government documents. More emphasis to be given on rejected application/ death of the member. A list to be maintained. Check and verify from CCTV camera or functions video and photographs. Laboratory analysis of physical and electronic evidence. Creating a hypothesis based on available data, testing the hypothesis, Identifying the fraudsters involved. Interviewing and interrogation.

Topics: Forensic Audit

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