Current Attempt in Progress
Your firm is the auditor of Trojan Trading Ltd The audited financial statements for the year ended December show the
company's revenue was $ million and the profit before tax was $ The part of the working papers that records audit work on
the bank reconciliation at December noted cash receipts of $ recorded in the cash book before the year end that
were not credited to the bank statement until a week after year end. No further work was carried out because the amount was not
considered material, and that conclusion was noted in the audit working papers. In February the company investigated delays in
depositing cash receipts and discovered a fraud of $ The fraud was carried out by the cashier who was responsible for
depositing all receipts and preparing the bank reconciliation.
Should this have been reported? If so to whom?
