(b) Up to 1 mark per well described procedure.
– Discuss with management as to whether they are aware of any additional payroll frauds
– Review board minutes
– Discuss with the payroll manager the nature of the payroll fraud, how it occurred and the impact
– Review supporting documentation to confirm the total of the fraudulent payments made
– Review and test the internal controls surrounding setting up of and the payments to new joiners
– Consider if other information obtained indicates risks of material misstatement due to payroll fraud
– Obtain a written representation from management

5
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