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CS Professional · Internal and Forensic Audit · Fraud Detecting Techniques

Internal auditor Meera wants to check whether any employee in Hindustan Fabrics Ltd's payroll master has the same bank account number as another employee or a vendor. Which computer-assisted technique is most suitable?

Matching the payroll and vendor master files on the bank account field is most suitable. It exposes shared accounts between employees or with vendors, which are common indicators of ghost employees or diversion of funds, whereas stratification, ratios and sampling do not compare files.

  1. AStratification of salaries by grade
  2. BSampling of attendance records using attribute sampling
  3. CRatio analysis of payroll cost to sales
  4. DJoining or matching of payroll and vendor master files on bank account fieldCorrect

Explanation

Matching files on a common field such as bank account number reveals overlaps between employees and vendors, a classic indicator of ghost employees or related-party diversion. Stratification, ratios and sampling do not directly find shared accounts across files.

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