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CS Professional · Internal and Forensic Audit · Fraud Detecting Techniques

During a forensic review at Sundaram Traders Ltd, the auditor runs a test on the accounts payable file to find payments made to the same vendor, for the same amount, on the same invoice number within a short period. Which fraud-detection objective does this test mainly serve?

The test serves to identify duplicate payments. Matching vendor, amount and invoice number across the payables file reveals invoices paid more than once, which may be an error or a deliberate fraud, and it is a standard computer-assisted duplicate test.

  1. AIdentifying duplicate paymentsCorrect
  2. BIdentifying fictitious employees
  3. CIdentifying unrecorded sales
  4. DIdentifying stale cheques

Explanation

Matching vendor, amount and invoice number across payment records is a duplicate-testing routine. It is designed to flag the same invoice being paid twice, whether by error or by fraud. Ghost employee tests compare payroll with HR data, not vendor payments.

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