mariambiavanga1 mariambiavanga1

21-10-2022
Business

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QUESTION 2
[15 MARKS]
You are a manager in Beukes & Co. an audit firm. Your firm performs the audit of lipinge Co, a
company which installs windows. lipinge Co uses sales representatives to make direct sales to
customers. The sales representatives earn a small salary, and also earn a sales commission of 20%
of the sales they generate.
lipinge Co's sales manager has discovered that one of the sales representatives has been operating a
fraud, in which he was submitting false claims for sales commission based on non-existent sales. The
sales representative started to work at lipinge Co in January 2012. The forensic investigation
department of your firm has been engaged to quantify the amount of the fraud.
Required:
a. Recommend the procedures that should be used in the forensic investigation to
quantify the amount of the fraud.
(5)
b.How should the investigation objectives should be defined?
C. Who should direct the investigation and why?

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