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{"sheet":"Instructions","index":0,"n_rows":186,"n_cols":2,"rows_kept":186,"cut":false,"hidden":false,"merged":[[0,1,0,4],[163,1,163,15],[3,1,3,16],[96,1,96,14],[1,1,1,5],[5,1,5,16],[147,1,148,16]]}
[null,"UNCLASSIFIED"]
[null,"FRAUD SCHEME TEMPLATE\nINSTRUCTIONS"]
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[null,"This template is not a whole assessment regarding risk of fraud. Team should perform the audit procedures that are included within the audit working paper software."]
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[null,"This template serves only as a general guideline to follow when attempting to detect accounting fraud during the course of a financial statement audit. It does not encompass all existing schemes nor is it intended to be an exhaustive checklist of all procedures for the specific schemes listed. Engagement teams need to use professional judgment on adding necessary steps to their client file to address any potential fraud schemes."]
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[1,"Choosing an audit area"]
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[null,"a) Choose one of the areas in this template. Each area has some options of potential schemes."]
[null,"b) Team should delete the sheets of areas not assessed."]
[null,"c) If the Team wants to assess more than one scheme per area, a copy of such area should be created within this file. Avoid create a new file."]
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[2,"Choose a scheme"]
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[null,"a) Using the drop down list, choose a scheme that should be assessed."]
[null,"b) Team could include a scheme that is not in the drop down list. In this case boxes with examples will not be populated. Team should include additional items."]
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[3,"Share Knowledge With The Team (Potential Indicators of Scheme) - 1º Step."]
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[null,"a) After choose an Area and a Scheme, Team should discuss potential indicators of such scheme."]
[null,"b) Conclusions should be documented in the specific area showed below:"]
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[null,"c) If additional indicators should be assessed, Team could include such indicators in a specific box, showed below:"]
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[null,"d) Whether the Team asses that more audit procedures should be performed, Team should interview \n    management about its view. Mark option \"Y\" to see examples of inquires should be made to management."]
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[4,"Understanding  Management View (Potential Interviews and Questions)"]
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[null,"a) Conclusions regarding management's view should be documented in the specific area showed below:"]
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[null,"b) If the Team agrees that additional aspects should be discussed with management, Team could include such aspects in a specific box, showed below:"]
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[null,"c) Once the Team assess that more audit procedures should be performed, mark option \"Y\" in the drop down list to see \n    examples of additional procedures could be performed."]
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[5,"Additional Audit Procedures (Potential Audit Response to the Identified risk)"]
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[null,"Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed."]
[null,"a) Conclusions regarding of the results of the additional tests should be documented in the specific area showed below:"]
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[null,"b) If the Team agrees that additional procedures should be performed, Team could include such aspects in a specific box, showed below:"]

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[null,"PROTECTED A (when completed)"]
[null,"FRAUD SCHEME TEMPLATE",null,null,null,null,"Engagement"]
[null,null,null,null,null,null,"Year End"]
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[null,"Area","Revenue Recognition"]
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[null,"Scheme"]
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[null,"Additional Scheme"]
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[null,"1º Step - Share Knowledge With The Team (Potential Indicators of Scheme)"]
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[null,"Examples of aspects to be discussed ",null,null,null,null,null,null,"Conclusions"]
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[null,{"$f":"IF(C7=\"\",\"N/A\",VLOOKUP(C7,AA113:AB128,2,FALSE))","v":"N/A"}]
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[null,"Include additional indicators that should be discussed with the Team, if necessary."]
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[null,null,null,null,null,null,"Should we perform more audit procedures?"]
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[null,"2º Step - Understanding  Management View (Potential Interviews and Questions)"]
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[null,"Examples of aspects to be discussed  with management",null,null,null,null,null,null,"Conclusions"]
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[null,{"$f":"IF(OR(I21=\"N\",I21=\"\"),\"N/A\",VLOOKUP(C7,AA113:AC128,3,FALSE))","v":"N/A"}]
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[null,"Include additional aspects that should be discussed with management, if necessary."]
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[null,null,null,null,null,null,"Should we perform more audit procedures?"]
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[null,"3º Step - Additional Audit Procedures (Potential Audit Response to the Identified risk)"]
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[null,"Examples of additional audit procedures",null,null,null,null,null,null,"Conclusions"]
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[null,{"$f":"IF(OR(I33=\"N\",I33=\"\"),\"N/A\",VLOOKUP(C7,AA113:AD128,4,FALSE))","v":"N/A"}]
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[null,"Include additional procedures that should be performed, if necessary."]
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[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,1,"Premature Revenue Recognition - Side Letters with Customers and others","- Numerous side agreements made outside of the course of normal reporting channels with terms providing for:\n    1. Liberal/unconditional rights of return\n    2. Rights to cancel orders at any time\n    3. Contingencies which if not met make the sale null and void\n    4. Excuse of payment if goods purchased are not resold or for total absolution of payment\n    5. Rights of continuing negotiations\n    6. Committed entity to use its own sales force to find customers for reseller\n    7. Extended payment terms beyond 12 months\n    8. Absolving customers of payment obligation if anticipated funding is not received\n    9. Treatment of sales agreement as ineffective until goods resold\n\n- Large amounts of returns or credits after the close of a period\n","- Inquire of management and accounting personnel whether they are made aware of all side \n   agreements which modify sales\n - Inquire of the sales force whether they are allowed/encouraged to use side letters \n   (whether written or oral) with different terms from the original contract and the number of side \n   letter agreements entered into\n- Inquire of the sales force whether management often/ever commits the entity to use its own sales \n  force to find customers for resellers\n- Inquire of management and the sales force whether the entity often/ever makes side agreements \n  which extend payment terms beyond 12 months for goods purchased and not \n  resold, excuse payment altogether\n- Inquire of management and the sales force as to the entity's right of return policy and how was it \n  developed and if there were any changes to the return policy (this point only for new clients or for \n  an entity that changes their return policy)\n- Inquire of financial and accounting personnel whether they have any knowledge of side agreements which: \n     1. Absolve customers of payment obligations if anticipated funding is not received\n     2. Treat sales agreement as ineffective until goods resold\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review customer contracts, including side agreements; to determine if there is persuasive \n   evidence of an arrangement.  In particular look for side agreement terms providing for:\n     1. Liberal/unconditional rights of return\n     2. Rights to cancel orders at any time\n     3. Contingencies which if not met make the sale null and void\n     4. Excuse of payment if goods purchased are not resold or for total absolution of payment\n     5. Rights of continuing negotiations\n     6. Committed entity to use its own sales force to find customers for reseller\n     7. Extended payment terms beyond 12 months\n     8. Absolving customers of payment obligation if anticipated funding is not received\n     9. Treatment of sales agreement as ineffective until goods resold\n\n- Confirm for a sample of major customers certain relevant contract terms including the absence of side \n  agreements or the terms of side agreements if applicable. In certain circumstances, a call to the \n  customer to verbally confirm terms may be considered feasible. Obtain permission from the client \n  prior to calling customers. "]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,2,"Premature Revenue Recognition  - Accounts Receivable Indicators","- Unexplained improvements in gross margin\n- Increased days sales outstanding at the end of a period as compared with other parts of the year \n  and prior year\n- Inconsistent business activity (i.e., higher revenues with no corresponding increase in distribution costs)\n","-Inquire of management, financial and accounting and sales personnel as to the reasons for \n change in receivables\n-Inquire of management about any change in the revenue recognition policy (did the change result \n in earlier revenue recognition?)\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Perform analytical procedures to identify the existence of unusual transactions or events. In particular review:\n    - Net Profit Margin\n    - Return on Total Assets\n    - Gross Profit Margin\n    - Current or quick ratio\n    - Receivable turnover\n    - Days Sales Outstanding\n    - A/R Allowance as a % of A/R\n\n    and look for unusual fluctuations or trends for the current period to prior periods (prior year, quarterly, monthly \n    and weekly). The ratios may indicate that A/R is increasing or that liabilities (i.e. deferred revenue) are \n    decreasing inappropriately from one period to the next which could indicate fictitious sales or premature \n    revenue recognition.\n    \n- Review prior period ratios to determine if there is a pattern of increased revenue\n- Compare current year monthly sales with prior year monthly sales and look for unusual fluctuations \n- Perform substantive testing of sales transactions for periods with unexpected analytic results\n- Confirm accounts receivable balances at year end (early confirmations with a roll forward may be ineffective)"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,3,"Premature Revenue Recognition - General Factors"," - Large, numerous or unusual sales transactions occurring shortly before the end of the period\n - Large amounts of returns or credits after the close of a period\n","- Inquire of relevant personnel (including management, sales force and accounting staff) whether \n  they have ever recorded revenue for sales for which customers had not signed a purchase \n  order (soft sales)","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review sales contracts including the provisions governing time, manner and conditions for payment, delivery, \n  shipping terms, risk of loss, passage of title and return provisions to determine whether a sales agreement \n  exists and ensure that all conditions have been met to justify revenue recognition\n- Examine large or unusual transactions occurring prior to the close of the period to ensure that they are \n  properly accounted for\n- Review prior periods (prior years, quarter ends, month ends) to determine if there is a pattern of \n  premature recognition\n- Conduct sales cut-off tests by selecting invoices from both the end of the previous period and the beginning \n  of the subsequent period and examine the appropriate supporting documentation sales order, shipping \n  documentation etc, to ensure that they are recorded in the proper period\n- Verify sales via written confirmations\n- Inquire about reasons for large returns. If considered necessary, using professional judgement, \n  confirm with customer the reasons for large returns\n- Review sales and shipping invoices to ensure that they are in numerical sequence. If not, fictitious invoices may \n  be hidden\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,4,"Premature Revenue Recognition - Early Delivery of Product","Delivery of goods before agreed upon date in the purchase order","- Inquire of shipping department whether they have ever been asked to ship earlier than normal \n  for customers or if there is inventory stored in the warehouse that has been documented as \n  shipped. Also ask if they have been asked to adjust the shipping dates.\n- Inquire of sales force whether they ever ship product to customers designed to arrive more \n  than a few days ahead of the customers required delivery date.\n- With respect to entity's shipping products, inquire of the warehouse and shipping \n  personnel whether he/she or anyone else has ever been instructed: \n    1. To misstate the amount of merchandise the entity ships or receives\n    2. To destroy, conceal, pre-date or postdate the shipping and/or inventory documents\n    3. To accelerate shipments prior to month or year-end\n    4. To ship to a temporary or holding warehouse prior to final shipment to the customers premises\n    5. To do anything else which is otherwise unusual, questionable or improper\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review underlying shipping documents (including terms FOB destination and shipping point) for accuracy \n  and verify existence of transactions.\n- Compare shipping costs to prior periods for reasonableness.\n- Perform shipping analytics, such as shipping costs as a percentage of revenue. Compare to prior \n  periods (prior year, prior quarters, prior month ends). Inquire of management of various fluctuations.\n- Inquire of customers whether they have ever been asked to accept delivery of products earlier \n  than required. \n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,5,"Premature Revenue Recognition - Channel Stuffing","Large, numerous or unusual transactions occurring shortly before the end of the period at discounted prices.","- Inquire of sales people whether management has encouraged distributors to overbuy under the \n  short-term offer of deep discounts (i.e., channel stuffing)\n- Inquire of shipping personnel whether they have noticed signs of product being shipped \n  to customers ahead of their requirements.\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review customer contracts and side agreements for unusual discounts in exchange for sales and for right of \n  return provisions to ensure that revenue is appropriately recorded\n - Review returns subsequent to period end, compare to other periods to determine if the returns \n  appear reasonable\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,6,"Improper Revenue Recognition - Backdating of Agreements","Evidence of sales agreements dated prior to actual fate of contract","Inquire of individuals in sales, financial, accounting and legal departments whether they have ever been instructed or pressured to back date agreements","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\nReview original signed customer contracts for appropriate dating and to determine the nature and validity of business transacted with major customers, borrowers and lenders. In particular look at the provisions governing time and performance"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,7,"Improper Revenue Recognition - Backordered Sales","- Numerous returns after close of period\n- Large, numerous or unusual transactions occurring shortly before the end of the period\n- Numerous customer complaints regarding lack of completeness in shipments\n","- Inquire of management, the sales force, financial and accounting personnel regarding the \n  policy for billing backordered goods and partially filled orders\n- Inquire of management, the sales force, financial and accounting personnel about the \n  process for filling partially filled orders or backlog\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\nReview sales documentation for partial shipment for backordered goods to ensure that revenue is not recognized for orders that cannot be filled or are partially filled"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,8,"Improper Revenue Recognition - Bill and Hold (Operational & Financial Indicators)","- Bills of lading signed by an entity employee rather than shipping company\n- Shipments made to warehouses rather than to a customer's regular address\n- Shipping information is missing on invoices\n- High shipping costs incurred near the end of the accounting period\n- Large, numerous or unusual sales transactions occurring shortly before the end of the period\n- Decrease in current year monthly sales from the prior year may indicate the reversal of \n  fraudulent bill and hold transactions in a subsequent period\n- Unexplained improvements in gross margin\n","- Inquire of warehouse personnel regarding customer inventory held on the premises or in a third \n  party warehouse\n- Inquire of shipping department or finance personnel if they have ever been asked to falsify or \n  alter shipping documents\n- With respect to companies shipping products, inquire of the warehouse and shipping \n  personnel whether he/she or anyone else has ever been instructed:\n     1. To misstate the amount of merchandise the entity ships or receives\n     2. To destroy, conceal, pre-date or postdate the shipping and/or inventory documents\n     3. To accelerate shipments prior to month or year-end\n     4. To ship to a temporary or holding warehouse prior to final shipment to the customers premises.\n     5. To do anything else which is otherwise unusual, questionable or improper \n- Inquire of accounting management regarding any bill and hold policies and any customers with \n  bill and hold arrangements\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review sales contracts and/or orders to ensure that:\n   1. The risks of ownership have passed to the buyer\n   2. The customer has made a fixed commitment to purchase the goods\n   3. There is a fixed schedule for delivery of the goods\n   4. The seller has not retained any specific performance obligations for the goods\n   5. The ordered goods are segregated from the sellers inventory and not used to fill other orders\n   6. The goods are complete and ready for shipment\n- Review underlying shipping documents for accuracy and verify existence of transactions\n- Compare shipping costs to prior periods for reasonableness\n- Review warehouse costs and understand the business purpose of all warehouses\n- Confirm special bill and hold terms with customers directly including transfer of risk of loss and liability \n  to pay for the bill and hold goods\n- Test reconciliation of goods shipped to goods billed for accuracy\n- Select a sample of sales transactions from the sales journal, obtain the supporting documentation and:\n   1. Inspect the sales order for approved credit terms\n   2. Compare the details of the sales orders, shipping documents and sales invoices for inconsistencies \n   3. Compare the prices on sales invoices against published prices \n   4. Recompute any extensions on sales invoices \n- In conjunction with the physical inventory, tour facility or warehouse and inquire of warehouse \n  personnel about any held customer products\n\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,9,"Improper Revenue Recognition - Liberal Return/ Exchange/ Refund Policies","- Customers given payment terms extending over a substantial portion of the period in which the customer \n  is expected to use or market the related products\n- Customers are given an extended return, refund or exchange period on products or services\n","- Inquire of sales personnel whether the entity has offered customers price concessions, refunds, or \n  new products. If so, inquire as to how long the payment term extends.\n- Inquire as to the entity's exchange policy.\n- Inquire of accounting staff and financial personnel as to the returns policy amount of returns. Confirm that the \n  policy is being followed with warehouse personnel who process returns.\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review the underlying value of the entity's products in relation to other products in the market. \n   Has the value been decreased due to the introduction of other products or market conditions? \n   Verify subsequent sales pricing for price erosion and net realisable value of inventory.  \n- Examine subsequent credits to customers and their nature to identify price concessions or liberal credits \n  offered to customers over and above policy.\n- Compare returns subsequent to reporting period to both the return reserve and the monthly returns \n  for reasonableness\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,10,"Improper Revenue Recognition - Contigent Sales","- Sales contracts where collection is tied to some other event such as the resale of a product or receipt \n  of anticipated funding\n- Customers given payment terms extending over a long period of time.\n","- Inquire of sales personnel, legal and financial personnel about the existence of contingencies in sales \n  contracts and about whether customers are being given unusually generous payment terms or whether \n  the contract contains unusual terms regarding payment","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Confirm with customers the terms of sales, including any contingency on future events"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,11,"Improper Revenue Recognition - Recording Fictitious Revenues","- Significant adjustments to revenue at the end of the reporting period\n- Unexpected increases in sales by month at period end\n- Customers with unknown names or addresses","- Inquire of accounting personnel (including junior personnel) whether any revenues are recorded outside of the \n   normal invoicing process, or standard monthly journal entries. If so, do the journal entries have adequate, \n   proper and bona fide supporting documentation?\n-  Inquire whether accounting personnel have been pressured to make or adjust journal entries\n-  Inquire of sales people, accounting staff and shipping personnel whether they have noted any unusually \n   high sales or shipments to customers with no reasonable explanation\n-  Inquire of accounting personnel on whether they have been pressured into creating false invoices for \n   existing customers\n-  Inquire of sales people, accounting staff and shipping personnel whether they have noted any significant \n   sales or shipments to unfamiliar new customers\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Send confirmations\n- Perform alternative procedures for confirmations not returned or returned with material exceptions\n- Review journal entries supporting documentation, and verify its accuracy\n- Look for sales which reverse in the subsequent period\n- See Early Delivery of Product and Bill and Hold sections \n- Conduct research of publicly available information (e.g., on-line database, manual record and Internet)  \n  to verify existence and legitimacy of customer. Follow up with physical visits as required.\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,12,"Improper Revenue Recognition - Related Party Transactions","- Sales with a commitment from the seller to repurchase the goods\n- Sales with a guarantee by an entity financed by the seller of what is essentially an uncollectible receivable\n- Other sales to related parties or transactions which are less than arms length\n- Shipments made to warehouses rather than to a customer's regular address\n- Shipments of damaged goods at full sales prices\n- Abnormally large amounts of sales to one or few parties\n- Material receivables from related parties including officers, employees and directors","- Inquire of management, sales people, accounting staff, shipping personnel and procurement staff whether they \n  are aware of any customers or suppliers that may be related to management or other employees of the client\n- If there are numerous sales to a single or few customers, inquire as to the nature of the relationship between \n  the buyer and seller.","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Look for related party transactions outside the ordinary course of the business\n- Conduct background investigations on customers and suppliers to identify related parties and confirm \n  legitimacy of business\n- Look for unusual or complex transactions occurring close to the end of a reporting period\n- Look for significant bank accounting or operations for which there is no apparent business purpose\n- Review the nature and extent of businesses transacted with major suppliers, customers, borrowers and lenders \n  to look for previously undisclosed relationships\n- Review confirmations of loan receivables and payables for indications of guarantees\n- Perform alternative procedures if confirmations are not returned or returned with material exceptions\n- Review material cash disbursements, advances and investments to determine if the client is funding a \n  related entity\n- Test related party sales to supporting documentation (i.e. contract and sales order) to ensure appropriately \n  recorded\n- Discuss with counsel, prior auditors and other service providers the extent of their knowledge of parties to \n  material transactions\n- Inquire about side agreements with related parties for right of return or contract cancellation without recourse"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,13,"Improper Revenue Recognition - Other Sham Transactions","- Booking consignment sales as income\n- Conditional Sales (i.e., recognition in instances where the buyer has right of return.)\n- Recording refundable deposits as income\n- Transactions with no business purpose","- Inquire of sales and legal department to determine number of consignment transactions/arrangements\n- Inquire of management and the legal department regarding the business purpose of large or unusual\n  transactions that appear to be out of the ordinary","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review inventory given on consignment and trace to the ledgers to determine if income was recognised on \n   consignment sales\n- Review documentation or contracts to determine that refundable deposits are appropriately recorded \n  as a liability\n- Test transactions with no business purpose to supporting documentation. Ensure an understanding of the \n  nature of the transaction is obtained\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,14,"Improper Revenue Recognition - Decreasing Contra Sales Accounts","- Decrease in the contra sales account or other sales allowances or provisions in relation to the prior period\n- Returns and allowances misclassified as expenses rather than as a reduction of gross sales\n","- Inquire of sales personnel about the nature of changes or reductions to sales allowances such as \n  the allowance for sales returns\n- Inquire of sales personnel as to whether there have been changes to the return policies\n- Inquire of accounting personnel as to whether they have approved classification of contra revenue \n   items, or been pressured to do so\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review returns/allowance and warranty reserve account to ensure that all returns are recorded and that all \n  warranty liabilities are recorded in the year of sale\n- Review returns and allowances to ensure proper classification\n- Review returns subsequent to period end and compare to reserve for adequacy\n- Perform gross profit ratio analysis and compare to prior years to look for unusual fluctuations"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,15,"Improper Revenue Recognition - Keeping Books Open to Include Additional Sales","- Unusual increases in monthly sales close to year- end","- Inquire of accounting staff whether they are aware of any unusual delays in closing the books at period end","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Perform cut-off tests to ensure sales are recorded in the proper period"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,16,"Improper Revenue Recognition - Improperly Reporting Revenue based on Gross Sales","- Those situations where an entity is valued based on a multiple of revenues","- Inquire as to whether the entity has unmitigated general inventory risk for products sold \n  (i.e., has title to a product before the product is shipped to a customer, even if shipped from \n  a third party supplier directly or takes title if the item is returned by the customer)","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review and test sales to the contracts to determine whether the entity:\n   1. Acts as a principal in the transaction\n   2. Takes title to the products\n   3. Has risks and rewards of ownership\n   4. Acts as an agent or broker"]
[]
[]
[]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"Y"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N/A"]

{"sheet":"Inventory","index":2,"n_rows":124,"n_cols":30,"rows_kept":124,"cut":false,"hidden":false,"merged":[[35,1,35,9],[37,1,37,6],[37,8,37,9],[39,1,39,6],[39,8,43,9],[41,1,41,6],[43,1,43,6],[22,1,22,9],[24,1,24,6],[24,8,24,9],[26,1,26,6],[26,8,30,9],[28,1,28,6],[30,1,30,6],[12,1,12,6],[12,8,12,9],[14,1,14,6],[14,8,18,9],[16,1,16,6],[18,1,18,6],[0,1,0,4],[10,1,10,9],[1,1,2,2],[1,8,1,9],[4,4,4,9],[6,2,6,8],[8,2,8,8]]}
[null,"PROTECTED A (when completed)"]
[null,"FRAUD SCHEME TEMPLATE",null,null,null,null,"Engagement"]
[null,null,null,null,null,null,"Year End"]
[]
[null,"Area","Inventory"]
[]
[null,"Scheme"]
[]
[null,"Additional Scheme"]
[]
[null,"1º Step - Share Knowledge With The Team (Potential Indicators of Scheme)"]
[]
[null,"Examples of aspects to be discussed ",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(C7=\"\",\"N/A\",VLOOKUP(C7,AA113:AB128,2,FALSE))","v":"N/A"}]
[]
[null,"Include additional indicators that should be discussed with the Team, if necessary."]
[]
[]
[]
[null,null,null,null,null,null,"Should we perform more audit procedures?"]
[]
[null,"2º Step - Understanding  Management View (Potential Interviews and Questions)"]
[]
[null,"Examples of aspects to be discussed  with management",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(OR(I21=\"N\",I21=\"\"),\"N/A\",VLOOKUP(C7,AA113:AC128,3,FALSE))","v":"N/A"}]
[]
[null,"Include additional aspects that should be discussed with management, if necessary."]
[]
[]
[]
[null,null,null,null,null,null,"Should we perform more audit procedures?"]
[]
[]
[null,"3º Step - Additional Audit Procedures (Potential Audit Response to the Identified risk)"]
[]
[null,"Examples of additional audit procedures",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(OR(I33=\"N\",I33=\"\"),\"N/A\",VLOOKUP(C7,AA113:AD128,4,FALSE))","v":"N/A"}]
[]
[null,"Include additional procedures that should be performed, if necessary."]
[]
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[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,1,"Fictitious Inventory","- Inventory which cannot be easily physically inspected\n- Unsupported inventory, COS or A/P journal entries\n- Inflated or fake inventory count sheets\n- Unusual or suspicious shipping and receiving reports\n- Unusual or suspicious purchase orders\n- Large quantities of high cost items in summarised inventory\n- Unclear or ineffective cut-off procedures or inclusions in inventory of merchandise already sold or \n  for which purchases are not recorded\n- Adjusting entries which have increased inventory over time\n- Material reversing entries to the inventory account after the close of the accounting period\n- Inventory that is not subject to a physical count at year end\n- Client with multiple locations gives unusually early notice regarding the location of PwC inventory observation\n- Improper sales that are reversed and included in inventory but not counted in physical observation as a result   \n  (Example: the client mails bricks to a customer, and tells the customer it was a mistake and to mail them back. \n  The client tells the auditor that the packages contain computer chips and are being added back to inventory \n  and that they are being honest because they told the auditors about the improper sales transaction trick.)\n","- Inquire of finance personnel and management as to whether the entity is trying to obtain financing \n  secured by inventory\n- Inquire of purchasing personnel as to whether they have been pressured to create fake invoices and \n  purchase orders or false shipping and receiving reports for inventory\n- Inquire of accounting personnel as to whether they have been pressured to create fake or otherwise \n  non standard journal entries for the purchase of inventory\n- Inquire as to the reason for book to physical adjustments and how they were addressed\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Observe physical inventory \n     1. To ascertain whether there are well kept perpetual inventories that are periodically checked by \n         physical counts\n     2. Of goods held in public warehouses\n     3. To ensure that consigned inventory is excluded from inventory\n\n- Trace inventory tags to the inventory report sheets or other underlying documents\n- Test count large quantities of high cost inventory items\n- Obtain confirmations from suppliers as to the sales of inventory to the entity\n- Perform cut-off tests and review subsequent period entries\n- Review inventory and cost of sales general ledger for the reporting period prior to and subsequent to \n  year-end for large and unusual entries and reversing entries\n- Test unusual reconciling items in inventory reconciliation\n\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,2,"Fictitious Inventory - Analytical Factors","- Ratio analysis yielding a gross profit percentage higher than expected\n- Inventory which is increasing faster than sales\n- Decreasing inventory turnover\n- Shipping costs decreasing as a percentage of inventory\n- Inventory as a percentage of total assets rising faster than expected\n- Decreasing cost of sales as a percentage of sales\n- Cost of goods sold per books not agreeing with the entity's tax return\n- Shipping costs have fallen while total inventory or Cost of Sales has increased\n- Monthly trend analysis indicates spikes in inventory balance near year-end\n- Inventory turnover lower than prior periods\n- Inventory turnover lower than competitor or industry average","- Inquire of purchasing personnel as to whether they have been pressured to create fake invoices and \n  purchase orders or false shipping and receiving reports for inventory\n- Inquire of accounting personnel as to whether they have been pressured to create fake or otherwise \n  non standard journal entries for the purchase of inventory\n- Inquire as to the reason for book to physical adjustments and how they were addressed\n- Inquire as to the entity's policy for inventory counts (i.e., frequency and procedure)\n- Inquire of management and internal audit as to the monetary adjustment of the book to physical counts \n  and the reasons for the significant differences\n- Inquire as to the nature of the Entity's environment with respect to inventory controls, including the \n  physical inventory\n- Inquire as to whether all inventory shrinkages have been reported\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Investigate significant differences combined with other detailed testing"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,3,"Manipulation of Inventory Counts","- Inventory which cannot be easily physically inspected\n- Unsupported inventory, COS or A/P journal entries\n- Inflated or fake inventory count sheets\n- Unusual or suspicious shipping and receiving reports\n- Unusual or suspicious purchase orders\n- Large quantities of high cost items in summarised inventory\n- Unclear or ineffective cut-off procedures or inclusions in inventory of merchandise already sold or \n  for which purchases are not recorded\n- Adjusting entries which have increased inventory over time\n- Material reversing entries to the inventory account after the close of the accounting period\n- Inventory that is not subject to a physical count at year end\n- Client with multiple locations gives unusually early notice regarding the location of PwC inventory observation\n- Improper sales that are reversed and included in inventory but not counted in physical observation as a result   \n  (Example: the client mails bricks to a customer, and tells the customer it was a mistake and to mail them back. \n  The client tells the auditor that the packages contain computer chips and are being added back to inventory \n  and that they are being honest because they told the auditors about the improper sales transaction trick.)\n","- Inquire as to the entity's policy for inventory counts (i.e., frequency and procedure)\n- Inquire of management and internal audit as to the monetary adjustment of the book to physical counts \n  and the reasons for the significant differences\n- Inquire as to the nature of the Entity's environment with respect to inventory controls, including the \n  physical inventory\n- Inquire as to whether all inventory shrinkages have been reported\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- During physical inventory expand number of test counts. (Consider focusing test \n  counts on high valued items.)\n- For significant book to physical adjustments, understand the reasons for the adjustments and \n  if deemed necessary test the significant adjustments\n- Observe a physical inventory unannounced\n- Conduct physical inventories for multi locations all on the same date\n- Observe physical inventory \n     1. To ascertain whether there are well kept perpetual inventories that are periodically checked by \n         physical counts\n     2. Of goods held in public warehouses\n     3. To ensure that consigned inventory is excluded from inventory\n\n- Trace inventory tags to the inventory report sheets or other underlying documents\n- Test count large quantities of high cost inventory items\n- Obtain confirmations from suppliers as to the sales of inventory to the entity\n- Perform cut-off tests and review subsequent period entries\n- Review inventory and cost of sales general ledger for the reporting period prior to and subsequent to \n  year-end for large and unusual entries and reversing entries\n- Test unusual reconciling items in inventory reconciliation"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,4,"Improper Valuation","- Few or no write downs to market or no provisions for obsolescence where there have been rapid \n  changes in product lines or technology or rapid decline in the market\n- Price adjustments or pricing concessions to sales that may indicate a net realisable value problem\n","- Inquire of accounting personnel as to the entity's inventory pricing policy and how they identify net realisable \n   value mark-downs\n- Inquire of management, accounting and finance personnel as to whether the entity has shown historical \n  patterns in the past of over valuation (i.e., prior year write down which became value impaired)\n- Inquire of accounting personnel as to whether they have ever been requested to delay inventory \n  write-downs due to obsolescence etc.\n- Ask warehouse personnel if inventory is slow moving, damaged or obsolete\n- Inquire of Accounting personnel if they are aware of any items being sold below cost","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review inventory ledger to determine whether inventory is valued in accordance with GAAP \n  (i.e., lower of cost or market)\n- Compare inventory suspected to be obsolete with recent and subsequent sales activity and \n  obtain explanations from management\n- Review the perpetual inventory records for slow-moving items\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,5,"Fraudulent or improper inventory capitalisation","- Overstating income by the improper capitalisation of inventory items\n- Entity is capitalising inventory costs that other companies in the industry expense\n","- Inquire of management and accounting personnel as to the entity's policy for inventory cost capitalisation","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Interview manufacturing process personnel and gain an understanding of all charges to inventory\n- Perform analytic review of the components of cost of sales\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,6,"Theft of Inventory","- Excessive write downs of inventory as compared to prior periods\n- Lack of adequate segregation of duties between individuals authorised to buy/sell \n  inventory, individuals with record keeping functions and individuals with physical custody of inventory\n","- Inquire of management as to the entity's policy with respect to write down of inventory\n- Inquire of management as to the entity's policy with respect to inventory counts and how \n  differences in counts are explained or treated\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Observe full physical inventory and analyse inventory account for discrepancies between physical inventory \n  and books\n- Analyse historical trends of inventory write-downs\n"]
[]
[]
[]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"Y"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N/A"]

{"sheet":"Receivables","index":3,"n_rows":121,"n_cols":30,"rows_kept":121,"cut":false,"hidden":false,"merged":[[35,1,35,9],[37,1,37,6],[37,8,37,9],[39,1,39,6],[39,8,43,9],[41,1,41,6],[43,1,43,6],[22,1,22,9],[24,1,24,6],[24,8,24,9],[26,1,26,6],[26,8,30,9],[28,1,28,6],[30,1,30,6],[12,1,12,6],[12,8,12,9],[14,1,14,6],[14,8,18,9],[16,1,16,6],[18,1,18,6],[0,1,0,4],[10,1,10,9],[1,1,2,2],[1,8,1,9],[4,4,4,9],[6,2,6,8],[8,2,8,8]]}
[null,"PROTECTED A (when completed)"]
[null,"FRAUD SCHEME TEMPLATE",null,null,null,null,"Engagement"]
[null,null,null,null,null,null,"Year End"]
[]
[null,"Area","Receivables"]
[]
[null,"Scheme"]
[]
[null,"Additional Scheme"]
[]
[null,"1º Step - Share Knowledge With The Team (Potential Indicators of Scheme)"]
[]
[null,"Examples of aspects to be discussed ",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(C7=\"\",\"N/A\",VLOOKUP(C7,AA113:AB128,2,FALSE))","v":"N/A"}]
[]
[null,"Include additional indicators that should be discussed with the Team, if necessary."]
[]
[]
[]
[null,null,null,null,null,null,"Should we perform more audit procedures?"]
[]
[null,"2º Step - Understanding  Management View (Potential Interviews and Questions)"]
[]
[null,"Examples of aspects to be discussed  with management",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(OR(I21=\"N\",I21=\"\"),\"N/A\",VLOOKUP(C7,AA113:AC128,3,FALSE))","v":"N/A"}]
[]
[null,"Include additional aspects that should be discussed with management, if necessary."]
[]
[]
[]
[null,null,null,null,null,null,"Should we perform more audit procedures?"]
[]
[]
[null,"3º Step - Additional Audit Procedures (Potential Audit Response to the Identified risk)"]
[]
[null,"Examples of additional audit procedures",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(OR(I33=\"N\",I33=\"\"),\"N/A\",VLOOKUP(C7,AA113:AD128,4,FALSE))","v":"N/A"}]
[]
[null,"Include additional procedures that should be performed, if necessary."]
[]
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[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,1,"Fictitious Receivables - Recording Receivables which do not exist","- Large receivables from related parties or unfamiliar sources\n- Large discounts, allowances or returns after the close of the accounting period\n- Lengthening of aging of receivables or granting of extended credit terms\n- Reclassification of receivables between customers\n- Write off of customer balances after period end\n- Reduction of allowance or reserve balances from prior periods\n- Large volume sales to customers close to end of reporting period (stuffing the channel)\n- Increased trend of past due receivables\n- Decrease in quick or current ratio\n- Unexplained decrease in accounts receivable turnover\n- Unexplained increase in Days Sales Outstanding (DSO)\n- Lack of adequate controls concerning sales and billing.","- Inquire of finance personnel and management as to whether the entity is trying to obtain financing secured \n  by its receivables.\n- Inquire of sales personnel as to whether they have been pressured to create fake invoices for sales\n- Inquire of accounting or sales personnel as to whether they have been pressured to overstate the value \n  of receivables\n- Inquire of accounting personnel as to whether they have been pressured to create fake journal entries or \n  invoices for the sales of inventory or assets\n- Inquire if customers have been pressured to accept large volume orders close to the end of period. May be \n  accompanied by complete right of return of product if they cannot sell through.\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Select sales and credit memoranda to obtain assurance that cut-off is achieved by reviewing the cut-off at the \n  time of inventory taking and at year-end (if different) and performing the following:\n     1. Examine the related records of goods shipped (i.e. purchase order, packing list, invoice and sales \n         transaction journal) to determine that the sales invoices are recorded as sales in the proper period\n     2. Examine the related records of returns and claims from customers (receiving log, debit memo, \n         credit memo, A/R transaction journal) to determine that the credit (debit) memoranda are recorded \n         in the proper period\n     3. Determine whether there are unusually high volumes of returned goods by obtaining and reviewing \n         the sales returns reports subsequent to year end\n     4. Consider unusual fluctuations in sales by obtaining and reviewing the daily sales reports for the five \n         working days before and after year-end\n\n- Look for unusual, suspicious or non-standard journal entries to accounts receivable including reclassification \n  of accounts receivable balances between customers\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,2,"Related Party Receivables - Recording receivables which the entity does not expect to collect","- Material receivables from related parties including officers, employees and directors\n- Numerous leases between related parties\n","- Inquire about side agreements with related parties for right of return or contract cancellation without recourse\n- Inquire of legal personnel as to all leases entered into by the entity with related parties\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Look for related party transactions outside the ordinary course of the business\n- Conduct background investigations on customers and suppliers to identify related parties and confirm \n  legitimacy of business\n- Look for unusual or complex transactions occurring close to the end of a reporting period\n- Look for significant bank accounting or operations for which there is no apparent business purpose\n- Review the nature and extent of businesses transacted with major suppliers, customers, borrowers \n  and lenders to look for previously undisclosed relationships\n- Review confirmations of loan receivables and payables for indications of guarantees\n- Perform alternative procedures if confirmations are not returned or returned with material exceptions\n- Review material cash disbursements, advances and investments to determine if the client is \n  funding a related entity\n- Test related party sales to supporting documentation (i.e., contract and sales order) to ensure \n  appropriately recorded\n- Discuss with counsel, prior auditors and other service providers the extent of their knowledge of \n  parties to material transactions\n- Inquire about side agreements with related parties for right of return or contract cancellation without recourse\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,3,"Inadequate reserves or failure to adequately recognise bad debts or impairment of receivables","- Minimum bad debt provisions or reserves that appear to be inadequate in relation to prior periods\n- History of inadequate reserves for uncollectible receivables\n- Economic conditions which are worsening (i.e., declining sales)\n- A/R days outstanding which are worsening form prior periods","- Inquire of management as to the reason for any change in the reserve rates or policy for reserves in \n  accounts receivable\n- Inquire of the sales force and credit department whether they have been pressured to grant credit to \n  customers who are not credit worthy\n- Inquire of credit department if they have been told to extend payment terms for certain customers\n- Inquire as to whether the entity has changed its credit policy and the reason for such change","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Perform analytical procedures to compare provision to prior periods and obtain an explanation from \n  management with regard to any under reserved amounts\n- Review collections subsequent to year-end\n"]
[]
[]
[]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"Y"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N/A"]

{"sheet":"Investments","index":4,"n_rows":120,"n_cols":30,"rows_kept":120,"cut":false,"hidden":false,"merged":[[35,1,35,9],[37,1,37,6],[37,8,37,9],[39,1,39,6],[39,8,43,9],[41,1,41,6],[43,1,43,6],[22,1,22,9],[24,1,24,6],[24,8,24,9],[26,1,26,6],[26,8,30,9],[28,1,28,6],[30,1,30,6],[12,1,12,6],[12,8,12,9],[14,1,14,6],[14,8,18,9],[16,1,16,6],[18,1,18,6],[0,1,0,4],[10,1,10,9],[1,1,2,2],[1,8,1,9],[4,4,4,9],[6,2,6,8],[8,2,8,8]]}
[null,"PROTECTED A (when completed)"]
[null,"FRAUD SCHEME TEMPLATE",null,null,null,null,"Engagement"]
[null,null,null,null,null,null,"Year End"]
[]
[null,"Area","Investments"]
[]
[null,"Scheme"]
[]
[null,"Additional Scheme"]
[]
[null,"1º Step - Share Knowledge With The Team (Potential Indicators of Scheme)"]
[]
[null,"Examples of aspects to be discussed ",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(C7=\"\",\"N/A\",VLOOKUP(C7,AA113:AB128,2,FALSE))","v":"N/A"}]
[]
[null,"Include additional indicators that should be discussed with the Team, if necessary."]
[]
[]
[]
[null,null,null,null,null,null,"Should we perform more audit procedures?"]
[]
[null,"2º Step - Understanding  Management View (Potential Interviews and Questions)"]
[]
[null,"Examples of aspects to be discussed  with management",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(OR(I21=\"N\",I21=\"\"),\"N/A\",VLOOKUP(C7,AA113:AC128,3,FALSE))","v":"N/A"}]
[]
[null,"Include additional aspects that should be discussed with management, if necessary."]
[]
[]
[]
[null,null,null,null,null,null,"Should we perform more audit procedures?"]
[]
[]
[null,"3º Step - Additional Audit Procedures (Potential Audit Response to the Identified risk)"]
[]
[null,"Examples of additional audit procedures",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(OR(I33=\"N\",I33=\"\"),\"N/A\",VLOOKUP(C7,AA113:AD128,4,FALSE))","v":"N/A"}]
[]
[null,"Include additional procedures that should be performed, if necessary."]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
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[]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,1,"Improper Valuation - Assigning an improper valuation to securities in the books and records","- Evidence of a decline in the fair value of debt securities held until maturity and non-marketable equity \n  securities that appears to be non temporary, that is not recorded\n- Improper classification of securities primarily as held to maturity or available for sale\n- Accumulating losses for available for sale securities in other comprehensive income","- Inquire of accounting personnel as to whether they have been asked or pressured to record held to maturity \n  securities at anything but amortised cost\n- Inquire of management as to the entity's policy with respect to recording unrealised gains or losses on \n  trading and available for sale securities\n- Inquire of accounting personnel as to whether all unrealised gains and losses in available for sale and trading \n  securities have been recorded and if not the reason\n- Inquire of accounting personnel whether they have ever been asked to postpone a write down of a debt security\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Obtain evidential matter to gain an understanding of the process used by management to classify investments \n  and consider whether investment activities support or conflict with managements stated intent. Look at written \n  records of investment strategies, records of investment activities, and minutes of meetings of the \n  Board of Directors.\n- Obtain evidential matter and perform recomputations where necessary to determine whether \n     1. Unrealised/realised gains/loses are computed in accordance with GAAP\n     2. Investment income is properly computed\n     3. Securities are properly valued in accordance with GAAP (i.e., amortised cost or fair value)\n     4. Securities are properly classified in accordance with GAAP based on managements intent \n         (i.e., current or long term)\n     5. All impaired trading and available for sale securities are written down to fair value and held to maturity \n        down to cost\n\n- Perform cut-off procedures to ensure that all purchases, sales and investment revenue are recorded in \n  the proper period\n- Investigate differences in confirmations to recorded investments\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,2,"Fictitious Investments - Recording investments which do not exist on the books and records","-  Investments with missing supporting documentation or that do not appear on brokerage statements","- Inquire of accounting personnel whether they have ever been asked or pressured to record fictitious \n  investments on the books and records","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Determine if investment actually exists by physical inspection or by confirmation with the issuer or custodian\n- Confirm unsettled transactions with broker-dealer\n- Review minutes of board of directors meeting to ensure that all investments were authorised by the Board and \n  that entity policy was followed in the trading of securities\n- Review executed partnership or similar agreements\n- Review internal control to ensure that the duties of purchasing, recording and custody are segregated\n"]
[]
[]
[]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"Y"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N/A"]

{"sheet":"Other Assets","index":5,"n_rows":122,"n_cols":30,"rows_kept":122,"cut":false,"hidden":false,"merged":[[35,1,35,9],[37,1,37,6],[37,8,37,9],[39,1,39,6],[39,8,43,9],[41,1,41,6],[43,1,43,6],[22,1,22,9],[24,1,24,6],[24,8,24,9],[26,1,26,6],[26,8,30,9],[28,1,28,6],[30,1,30,6],[12,1,12,6],[12,8,12,9],[14,1,14,6],[14,8,18,9],[16,1,16,6],[18,1,18,6],[0,1,0,4],[10,1,10,9],[1,1,2,2],[1,8,1,9],[4,4,4,9],[6,2,6,8],[8,2,8,8]]}
[null,"PROTECTED A (when completed)"]
[null,"FRAUD SCHEME TEMPLATE",null,null,null,null,"Engagement"]
[null,null,null,null,null,null,"Year End"]
[]
[null,"Area","Other Assets"]
[]
[null,"Scheme"]
[]
[null,"Additional Scheme"]
[]
[null,"1º Step - Share Knowledge With The Team (Potential Indicators of Scheme)"]
[]
[null,"Examples of aspects to be discussed ",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(C7=\"\",\"N/A\",VLOOKUP(C7,AA113:AB128,2,FALSE))","v":"N/A"}]
[]
[null,"Include additional indicators that should be discussed with the Team, if necessary."]
[]
[]
[]
[null,null,null,null,null,null,"Should we perform more audit procedures?"]
[]
[null,"2º Step - Understanding  Management View (Potential Interviews and Questions)"]
[]
[null,"Examples of aspects to be discussed  with management",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(OR(I21=\"N\",I21=\"\"),\"N/A\",VLOOKUP(C7,AA113:AC128,3,FALSE))","v":"N/A"}]
[]
[null,"Include additional aspects that should be discussed with management, if necessary."]
[]
[]
[]
[null,null,null,null,null,null,"Should we perform more audit procedures?"]
[]
[]
[null,"3º Step - Additional Audit Procedures (Potential Audit Response to the Identified risk)"]
[]
[null,"Examples of additional audit procedures",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(OR(I33=\"N\",I33=\"\"),\"N/A\",VLOOKUP(C7,AA113:AD128,4,FALSE))","v":"N/A"}]
[]
[null,"Include additional procedures that should be performed, if necessary."]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
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[]
[]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,1,"Improper capitalisation of expenses as costs of fixed assets to increase the value of assets \n in the books and records.","- Heavy capitalisation of fixed assets\n- Capitalised costs that are increasing faster than revenue over lengthy periods\n- Capitalised costs which are not at historical cost\n- Past accounting policies which have been aggressive with respect to capitalisation\n- Repair and maintenance expenses (or other operating expense) dropping out of line with operations \n  (indicating these are being capitalised instead of expensed\n","- Inquire of accounting personnel as to whether they have ever been requested to record routine \n  repairs as capitalised costs\n- Inquire as to dates assets are placed in service and whether any construction interest or taxes \n  were capitalised beyond the in service date\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review improvements to property which do not add to the utility or improve the life of the asset and thus \n  would more properly have been recorded as expenses and not as an improvement to property\n- Using professional judgement perform additional testing on fixed assets additions to supporting detail\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,2,"Fictitious Fixed Assets - Recording assets which do not exist","- Existence of questionable fixed assets on books not having a relation to the business\n- Lack of a subsidiary ledger to record additions and retirements\n- Lack of adequate policies and procedures to determine whether property and equipment are received \n  and properly recorded\n- Lack of adequate written policies and procedures concerning the recording, retirement and disposition \n  of fixed assets\n- Lack of a subsidiary ledger to record additions and retirements\n- Lack of adequate policies and procedures to determine whether property and equipment are received \n  and properly recorded\n","- Inquire of purchasing or accounting personnel whether they have ever been asked to prepare fake invoices \n  or journal entries for the purchase of assets ","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Tour the clients facility and review fixed assets, select certain fixed assets from fixed asset listing and \n  physically inspect that the fixed asset exists\n- Determine that retired assets are no longer included in financial statements\n- Review internal controls to ensure that there are written policies covering retirement procedures which \n  include sequentially numbered retirement work orders, reasons for retirement and all necessary approvals\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,3,"Manipulation of fixed asset valuations","- Fixed assets valuations are inappropriate (e.g. - necessary impairment have note been recognised)","- Inquire of purchasing and accounting personnel as to whether they have ever been asked or pressured to \n  record assets at anything but historical cost\n- Inquire of accounting personnel as to whether all impairments have been recorded and if not the reason\n- Inquire of accounting personnel whether they have ever been asked to postpone a write down of a fixed asset\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Determine that the asset is carried in accordance with GAAP\n- Observe fixed assets, review the fixed asset ledger and other documents relating to fixed assets \n  and inquire of management to determine if there is:\n     1. A significant decrease in the market value of the asset\n     2. A significant change in the manner the asset is used\n     3. A significant adverse change in legal factors or the business climate which would affect the \n         value of an asset or an adverse action or assessment by a regulator"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,4,"Schemes Involving Depreciation/Amortisation","- Unusually slow depreciation of fixed assets or lengthy amortisation periods\n- Decreasing trend of depreciation and amortisation charges\n- Lack of written depreciation policy","- Inquire of accounting personnel as to whether they have ever been asked or pressured to manipulate \n  asset lives or salvage values\n- Inquire of accounting personnel about any changed lives on assets\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review prior years depreciation charges and compare with current year for reasonableness\n- Review detailed list of fixed assets and review the assigned lives of assets\n- Randomly select fixed assets and recalculate the net book value at reporting date based upon the \n  life of the asset"]
[]
[]
[]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"Y"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N/A"]

{"sheet":"Liabilities","index":6,"n_rows":120,"n_cols":30,"rows_kept":120,"cut":false,"hidden":false,"merged":[[35,1,35,9],[37,1,37,6],[37,8,37,9],[39,1,39,6],[39,8,43,9],[41,1,41,6],[43,1,43,6],[22,1,22,9],[24,1,24,6],[24,8,24,9],[26,1,26,6],[26,8,30,9],[28,1,28,6],[30,1,30,6],[12,1,12,6],[12,8,12,9],[14,1,14,6],[14,8,18,9],[16,1,16,6],[18,1,18,6],[0,1,0,4],[10,1,10,9],[1,1,2,2],[1,8,1,9],[4,4,4,9],[6,2,6,8],[8,2,8,8]]}
[null,"PROTECTED A (when completed)"]
[null,"FRAUD SCHEME TEMPLATE",null,null,null,null,"Engagement"]
[null,null,null,null,null,null,"Year End"]
[]
[null,"Area","Liabilities"]
[]
[null,"Scheme"]
[]
[null,"Additional Scheme"]
[]
[null,"1º Step - Share Knowledge With The Team (Potential Indicators of Scheme)"]
[]
[null,"Examples of aspects to be discussed ",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(C7=\"\",\"N/A\",VLOOKUP(C7,AA113:AB128,2,FALSE))","v":"N/A"}]
[]
[null,"Include additional indicators that should be discussed with the Team, if necessary."]
[]
[]
[]
[null,null,null,null,null,null,"Should we perform more audit procedures?"]
[]
[null,"2º Step - Understanding  Management View (Potential Interviews and Questions)"]
[]
[null,"Examples of aspects to be discussed  with management",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(OR(I21=\"N\",I21=\"\"),\"N/A\",VLOOKUP(C7,AA113:AC128,3,FALSE))","v":"N/A"}]
[]
[null,"Include additional aspects that should be discussed with management, if necessary."]
[]
[]
[]
[null,null,null,null,null,null,"Should we perform more audit procedures?"]
[]
[]
[null,"3º Step - Additional Audit Procedures (Potential Audit Response to the Identified risk)"]
[]
[null,"Examples of additional audit procedures",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(OR(I33=\"N\",I33=\"\"),\"N/A\",VLOOKUP(C7,AA113:AD128,4,FALSE))","v":"N/A"}]
[]
[null,"Include additional procedures that should be performed, if necessary."]
[]
[]
[]
[]
[]
[]
[]
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[]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,1,"Understating Expenses or Concealing Liabilities and Schemes Related to Capitalisation of Costs","- Increasing current/quick ratio from one period to the next\n- Unexpected improvements in gross margins\n- Change inventory with no simultaneous increase in A/P\n","- Inquire of accounting personnel as to whether they have ever been asked to postpone \n  expenses into a subsequent period","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review expense ledger and perform cut-off test to ensure that expenses are recorded in proper period \n  and not postponed until a subsequent period\n- Review returns/allowance and warranty reserve account to ensure that all returns are recorded and that \n  all warranty liabilities are recorded in the year of sale\n- Review returns and allowances to ensure proper classification\n- Review returns subsequent to period end and compare to reserve for adequacy\n- Perform gross profit ratio analysis and compare to prior years to look for unusual fluctuations\n- Review prior years expenses and liabilities and look for unusual trends\n- Perform current or quick ratio analysis which may indicate the concealment of liabilities\n- Review internal controls to ensure expenses are recorded in proper period and not postponed until a \n  subsequent period\n- Review expenditures to determine whether they are more appropriately classified as expenses"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,2,"Understating Expenses or Concealing Liabilities - Off Balance Sheet Entities","- The existence of related party transactions. In particular, if the client: \n     1. Has complex, interrelated off-balance sheet entities that have investments in each other and enter into \n         transactions with each other and with the client, including purchases/sales of assets, and operating \n         agreements\n     2. Has off-balance sheet debt arrangements that are collateralized by the clients assets or guarantees\n     3. Recognises gains from sales of assets and fees for services related to those assets \n        (e.g., marketing and or management contract fees) after their sale to thinly capitalised unconsolidated \n        special-purpose entities\n     4. Repurchases of assets that were previously sold to special-purpose entities\n     5. Sales leaseback arrangement with related party\n     6. Guarantee of debt of other entities or investees\n\n- Investments made by thinly capitalised unconsolidated special-purpose entities (that are controlled \n  by entity executives)\n\n","- Inquire of management and legal personnel as to the entity's affiliation with or sponsorship of special purpose \n  entities, partnerships or joint ventures\n- Inquire of management and legal personnel as to the entity's incentive to establish this entity(ies)\n- Inquire of management and legal personnel as to the legal structure of the entity\n- Inquire of management and legal personnel as to how the entity accounted for the venture \n  (cost or equity method)\n- Inquire of management and legal personnel as to what financial instruments are held in legal trust\n- Inquire of management and legal personnel as to any restrictive provisions\n- Inquire of management and legal personnel whether the entity can be unwound with a minimum amount of risk\n- Inquire of management and legal personnel as to whether the entity engages in other off balance sheet \n  activities\n- Inquire about the existence of any side agreements (whether verbal or written) not contained in the \n   original contract.\n- Inquire about parties involved in managing investments or receiving remuneration from investments.","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review all contracts for investments and ventures entered into by the entity\n- Look for related party transactions outside the ordinary course of the business\n- Conduct background investigations on customers and suppliers to identify related parties and \n  confirm legitimacy of business\n- Look for unusual or complex transactions occurring close to the end of a reporting period\n- Look for significant bank accounting or operations for which there is no apparent business purpose\n- Review the nature and extent of businesses transacted with major suppliers, customers, borrowers \n  and lenders to look for previously undisclosed relationships\n- Review confirmations of loan receivables and payables for indications of guarantees\n- Perform alternative procedures if confirmations are not returned or returned with material exceptions\n- Review material cash disbursements, advances and investments to determine if the client is funding \n  a related entity\n- Test related party sales to supporting documentation (i.e. contract and sales order) to ensure appropriately \n  recorded\n- Discuss with counsel, prior auditors and other service providers the extent of their knowledge of parties to \n  material transactions\n- Inquire about side agreements with related parties for right of return or contract cancellation without recourse\n- Confirmations of terms"]
[]
[]
[]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"Y"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N "]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N/A"]

{"sheet":"Cash","index":7,"n_rows":122,"n_cols":30,"rows_kept":122,"cut":false,"hidden":false,"merged":[[35,1,35,9],[37,1,37,6],[37,8,37,9],[39,1,39,6],[39,8,43,9],[41,1,41,6],[43,1,43,6],[22,1,22,9],[24,1,24,6],[24,8,24,9],[26,1,26,6],[26,8,30,9],[28,1,28,6],[30,1,30,6],[12,1,12,6],[12,8,12,9],[14,1,14,6],[14,8,18,9],[16,1,16,6],[18,1,18,6],[0,1,0,4],[10,1,10,9],[1,1,2,2],[1,8,1,9],[4,4,4,9],[6,2,6,8],[8,2,8,8]]}
[null,"PROTECTED A (when completed)"]
[null,"FRAUD SCHEME TEMPLATE",null,null,null,null,"Engagement"]
[null,null,null,null,null,null,"Year End"]
[]
[null,"Area","Cash"]
[]
[null,"Scheme"]
[]
[null,"Additional Scheme"]
[]
[null,"1º Step - Share Knowledge With The Team (Potential Indicators of Scheme)"]
[]
[null,"Examples of aspects to be discussed ",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(C7=\"\",\"N/A\",VLOOKUP(C7,AA113:AB128,2,FALSE))","v":"N/A"}]
[]
[null,"Include additional indicators that should be discussed with the Team, if necessary."]
[]
[]
[]
[null,null,null,null,null,null,"Should we perform more audit procedures?"]
[]
[null,"2º Step - Understanding  Management View (Potential Interviews and Questions)"]
[]
[null,"Examples of aspects to be discussed  with management",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(OR(I21=\"N\",I21=\"\"),\"N/A\",VLOOKUP(C7,AA113:AC128,3,FALSE))","v":"N/A"}]
[]
[null,"Include additional aspects that should be discussed with management, if necessary."]
[]
[]
[]
[null,null,null,null,null,null,"Should we perform more audit procedures?"]
[]
[]
[null,"3º Step - Additional Audit Procedures (Potential Audit Response to the Identified risk)"]
[]
[null,"Examples of additional audit procedures",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(OR(I33=\"N\",I33=\"\"),\"N/A\",VLOOKUP(C7,AA113:AD128,4,FALSE))","v":"N/A"}]
[]
[null,"Include additional procedures that should be performed, if necessary."]
[]
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[]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,1,"Unrecorded Sales - Failure to record sales or other items of income","- Poor collection procedures\n- Decreasing cash to total current assets\n- Decrease in sales accompanied by an increase in cost of sales\n- Unexplained cash discrepancies\n- Reversing entries or adjustments which cause the books or registers to reconcile to the amount of \n  cash on hand\n- Poor controls over the completeness of recording sales\n- Lack of adequate segregation of duties between employees opening the mail and recording the \n  receipt of payments\n- Customer cash receipts maintained in an account for a long period of time before being applied to \n  customers outstanding balance.\n","- Inquire of management or internal audit group whether there have ever been previous problems \n  with employee theft of incoming cash receipts\n- Inquire as to the entity's policy for monitoring off site sales people (if applicable) or rental properties \n  which generate cash flows for the entity\n- Inquire on how reconciling items or discrepancies are treated and reviewed by management\n- Inquire of management and sales personnel whether there are excessive customer complaints regarding \n  billing and/or payments not being applied to their accounts\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Compare cash register tape to cash drawer\n- Review sales to ensure that all transactions are adequately documented\n- Test all significant reconciling items to supporting detail\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,2,"Understated Sales or Receivables - Failure to record the full amount of sales transactions \n  on the books","- Poor collection procedures\n- Decreasing cash to total current assets\n- Decrease in sales accompanied by an increase in cost of sales\n- Unexplained cash discrepancies\n- Reversing entries or adjustments which cause the books or registers to reconcile to the amount of \n  cash on hand\n- Poor controls over the completeness of recording sales\n- Lack of adequate segregation of duties between employees opening the mail and recording the \n  receipt of payments\n- Customer cash receipts maintained in an account for a long period of time before being applied to \n  customers outstanding balance.\n","- Inquire of management or internal audit group whether there have ever been previous problems with employee \n  manipulation of sales entries or incoming cash receipts","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review sales invoices and compare with purchase orders and receiving reports\n- Review incoming receipts from customers to ensure that payments are made in accordance with sales \n  contracts terms and that any discount terms are accurately recorded or that no false discount terms are given\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,3,"Fraudulent Disbursements ","- Cash register employees with authority to void their own transactions\n- Lack of review of refunds, credits, rebates, etc.\n- Excessive voided purchase or sales transactions for which no supporting documentation is found\n- Missing or altered cash register tapes\n- Large amounts of refunds, credits, rebates, issued to vendors\n- Access to cash, cheques, purchase orders, is shared by many employees\n- Unexplained over budget expenses \n- Unusual reconciling items or lack of timely resolution of reconciling items","- Inquire as to the entity's policy for processing refunds, rebates or credits. Do the appropriate people verify \n  these transactions or are they merely rubber stamped? \n- Inquire of accounting personnel whether the entity's policy with respect to cheques is subject to override \n  and if so, by whom and how often are such controls overridden\n- Inquire about unexplained reconciling items and ask for supporting evidence\n- Gain an understanding for why certain indicators are present, and verify explanations with evidence","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review supporting documentation for voided or refunded transactions\n- Determine if there is an approved vendor list and review, e.g., review for related parties\n- Investigate related party transactions"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,4,"Fraudulent Disbursements - Theft of Entity cheques & Cheque Tampering","- Poor collection procedures\n- Decreasing cash to total current assets\n- Decrease in sales accompanied by an increase in cost of sales\n- Unexplained cash discrepancies\n- Reversing entries or adjustments which cause the books or registers to reconcile to the amount of \n  cash on hand\n- Poor controls over the completeness of recording sales\n- Lack of adequate segregation of duties between employees opening the mail and recording the \n  receipt of payments\n- Customer cash receipts maintained in an account for a long period of time before being applied to \n  customers outstanding balance.\n- Lack of adequate safeguarding of cash or incoming cheques\n- Unusual reconciling items or lack of timely resolution of reconciling items\n- Excessive amounts of voided cheques\n- Cheques payable to employees other than regular payroll cheques\n- Excessive soft expenses (advertising, legal consulting etc.) or unexpected trends in expenses\n- Duplicate or multiple payments, reimbursements, rebates, refunds, credits etc. to the same vendor\n- Cheques payable to cash\n- Poor physical safeguarding of assets\n- Lack of adequate segregation of duties between individuals authorised to process cheques and those in \n  supervisory role (i.e., pay and return schemes where an employee improperly pays a vendor or pays a \n  vendor for an invoice twice. The employee then calls the vendor and requests that the improperly issued or \n  duplicate cheque is returned. The employee then intercepts the incoming cheque and cashes it). \n","- Inquire of accounting, finance and treasury personnel as to the policy for establishing bank accounts and who \n  has authority to maintain such accounts\n- Inquire of accounting and treasury personnel as to whether they are aware of any established bank accounts \n  which do not seem related to the entity's business purpose\n- Inquire of accounting personnel whether the entity's policy with respect to cheques is subject to override \n  and if so, by whom and how often are such controls overridden\n- Inquire of accounting personnel as to how often the vendor list is audited and updated\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Review bank accounts established by the entity to ensure that they have been properly authorised and \n  that only authorised personnel are drawing on them\n- Select a sample of cancelled issued cheques for evidence of alterations or other tampering\n- Select a sample of cheques and review endorsements to ensure that endorsements have been made by proper \n  parties and cheques are deposited into authorised bank accounts\n- Select a sample of cancelled cheques and endorsements for evidence of forgery, altered terms or other forms \n  of tampering\n- Select a sample of cancelled cheques to ensure validity of payees\n- Select a sample of cheques for cheques payable to cash, bearer, unknown vendors\n- Select a sample of payments for review of multiple payments, refunds etc for possible pay and return schemes\n- Select a sample of payments and review for excessive soft expenses\n- Review list of vendors for shell companies or for companies with no apparent business purpose or to \n  determine  if vendor is linked to employees in any manner\n"]
[]
[]
[]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"Y"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N/A"]

{"sheet":"Payroll","index":8,"n_rows":120,"n_cols":30,"rows_kept":120,"cut":false,"hidden":false,"merged":[[35,1,35,9],[37,1,37,6],[37,8,37,9],[39,1,39,6],[39,8,43,9],[41,1,41,6],[43,1,43,6],[22,1,22,9],[24,1,24,6],[24,8,24,9],[26,1,26,6],[26,8,30,9],[28,1,28,6],[30,1,30,6],[12,1,12,6],[12,8,12,9],[14,1,14,6],[14,8,18,9],[16,1,16,6],[18,1,18,6],[0,1,0,4],[10,1,10,9],[1,1,2,2],[1,8,1,9],[4,4,4,9],[6,2,6,8],[8,2,8,8]]}
[null,"PROTECTED A (when completed)"]
[null,"FRAUD SCHEME TEMPLATE",null,null,null,null,"Engagement"]
[null,null,null,null,null,null,"Year End"]
[]
[null,"Area","Payroll"]
[]
[null,"Scheme"]
[]
[null,"Additional Scheme"]
[]
[null,"1º Step - Share Knowledge With The Team (Potential Indicators of Scheme)"]
[]
[null,"Examples of aspects to be discussed ",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(C7=\"\",\"N/A\",VLOOKUP(C7,AA113:AB128,2,FALSE))","v":"N/A"}]
[]
[null,"Include additional indicators that should be discussed with the Team, if necessary."]
[]
[]
[]
[null,null,null,null,null,null,"Should we perform more audit procedures?"]
[]
[null,"2º Step - Understanding  Management View (Potential Interviews and Questions)"]
[]
[null,"Examples of aspects to be discussed  with management",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(OR(I21=\"N\",I21=\"\"),\"N/A\",VLOOKUP(C7,AA113:AC128,3,FALSE))","v":"N/A"}]
[]
[null,"Include additional aspects that should be discussed with management, if necessary."]
[]
[]
[]
[null,null,null,null,null,null,"Should we perform more audit procedures?"]
[]
[]
[null,"3º Step - Additional Audit Procedures (Potential Audit Response to the Identified risk)"]
[]
[null,"Examples of additional audit procedures",null,null,null,null,null,null,"Conclusions"]
[]
[null,{"$f":"IF(OR(I33=\"N\",I33=\"\"),\"N/A\",VLOOKUP(C7,AA113:AD128,4,FALSE))","v":"N/A"}]
[]
[null,"Include additional procedures that should be performed, if necessary."]
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[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,1,"Payroll Fraud - Fictitious Employees","- Lack of adequate segregation of duties of the hiring, payroll processing and cheque disbursement \n  function (HR vs. payroll function)\n- Lack of adequate procedures governing the hiring and firing process\n- Lack of controls over new hires or terminations\n- Significant variances of budget to actual of payroll expense","- Inquire of management as to the entity's policy for hiring, pay increases and firing of personnel\n- Inquire about controls of additions to payroll and reconciliation of pay from one period to the next\n- Inquire of controls to ensure timely removal of all terminations from payroll","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Obtain payroll cheque run (use professional judgement to select number of employees and number of \n  runs to test) and review cheque run to ensure that all cheques are numerical. Randomly select employees \n  and trace hours worked to time sheet (ensure approved by supervisor for hourly employees) and obtain \n  employee file to ensure all proper documentation validating hiring of the employee is in place.\n- Perform the above procedure for manual payroll cheques. Also, understand why a manual cheque was used.\n- Ensure that changes to payroll are adequately documented and supported\n"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,2,"Payroll Fraud - Falsified Sales or Hours","- Lack of adequate control procedures over time reporting for hourly employees\n- Lack of adequate policies and procedures governing bonuses and commissions, etc. \n","- Inquire of management whether the entity has a history of establishing unrealistic quotas for sales or \n  hours worked thereby increasing the potential for fraud\n- Inquire about controls over time reporting (review of hours by supervisor, etc.)\n","Before starting to perform additional audit procedures, make sure that the Team has assessed controls to prevent or mitigate the risk of fraud. Consider the results of the tests of controls in determining the additional procedures to be performed.\n\n- Reconcile time cards/sheets (with approved supervisor signature and employee signature) to pay \n  cheque or cheque run\n- Recalculate commissions by testing sales invoices, back to sales orders, shipper and customer receipt\n"]
[]
[]
[]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"Y"]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N "]
[null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,null,"N/A"]

{"sheet":"SecurityLabel","index":9,"n_rows":10,"n_cols":1,"rows_kept":10,"cut":false,"hidden":true,"merged":[]}
["UNCLASSIFIED"]
["NON CLASSIFIÉ"]
["PROTECTED A"]
["PROTÉGÉ A"]
["PROTECTED B"]
["PROTÉGÉ B"]
["PROTECTED A (when completed)"]
["PROTÉGÉ A (lorsque complété)"]
["PROTECTED B (when completed)"]
["PROTÉGÉ B (lorsque complété)"]