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 will be the limitations of your report ?

Answer & Explanation:

Limitations of the Report Data is dependent on authenticity of documents and absence of digital records led to significant time in verification. If there was lack of support to forensic audit from the concerned persons in charge of maintenance of membership records. If the club's records are incomplete, missing, or not properly maintained, it can hinder the verification process. Where photocopies of original documents are relied upon, the report will have a disclaimer. All documents including electronic records are to be seen and verify with evidence. Digital forensics that auditor focuses on identifying, acquiring, processing, analyzing, and reporting on data stored electronically. Establish and maintain the chain of custody.

Topics: Forensic Audit

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