CS Professional · Internal and Forensic Audit · Fraud Detecting Techniques

While performing data analytics on the payroll of Himalaya Foods Pvt Ltd, an auditor wants to detect ghost employees. Which test is most directly suited?

Comparing employee bank accounts and addresses for duplicates, and matching payroll with attendance records, is most suitable. Ghost employees usually share accounts with real staff or have no attendance or leave history, so these analytical matches expose them. Other listed procedures target different areas such as assets, receivables or approvals.

1. AComparing employee bank account numbers and addresses for duplicates and matching with attendance recordsCorrect
2. BRecomputing depreciation on plant and machinery
3. CConfirming trade receivable balances with customers
4. DReviewing the board minutes for related party approvals