Reference no: EM132556131

PT Garuda Sakti found that there are employees whose lifestyle exceeds their monthly salary. The employee occupies a position in the purchasing department and is responsible for purchasing general materials and suppliers, and he has the authority to sign all purchases for an unlimited amount. In this case the leadership of PT. Garuda Sakti cannot rely on the financial statements of the internal audit to prove the fraudulent purchase. So the leader hired Gerard & Partners Public Accounting Firm to conduct an audit of the 2019 financial statements and asked to expand its audit in the purchasing section. This is necessary to determine whether there is evidence of misuse of company funds or a relationship in an activity that involves a conflict of interest

Requested:

Question 1: Make a list of audit procedures that can be applied by KAP (minimum 8) to find the possibility of collusion between buyers and suppliers