Class activity Sem-II-AY-2020-2021 QI You are a senior audit executive of the ABC Company and have been informed by your audit manager that during the year a fraud occurred at the client. A payroll clerk set up fictitious employees and the wages were paid into the clerk's own bank account. This clerk has subsequently left the company, but the audit manager is concerned that additional frauds have taken place in the wages department. In the context of increased risk of fraud in the wage department of the company, as an auditor state important audit procedures you may undertake in the audit of wages. Q2 Identify the potential effect on the financial statements in the following situations: a. Fictitious sales invoice worth OMR 2000 recorded in the books of accounts b. One Purchase invoice worth OMR 6000 recorded as OMR 5,500 c. Purchase of one machinery worth OMR 5,000 recorded as revenue expenditure