M.Krishnan 1959 days ago

It is suggested that a detailed note on each and every fraud case may be published for the information of the public, and to ensure that frauds of the same nature do not take place in future, in other PSBs also, by taking preventive measures and plugging loopholes in the internal audit/check system. Such a detailed note would help students of auditing also: it would be a practical lesson for them. Consider the following fraud, detected by an auditor. The ledger clerk, in order to accommodate a friend, who had no balance in his account, would debit the amount of cheque drawn by him to a dormant account; the entry would be rectified when the friend deposits adequate sum in his account., for honoring the cheque. Based on a hypothesis that around 10 per cent of the frauds only could be detected, actaual amount of frauds would be around Rs 1, 00, 000 crore.