Memo #$3-$ Payroll Problem $(1-2$ pages$)$

While auditing a company you notice an employee on the payroll who is living beyond his means $($e$.$g$.,$

clothes, automobiles, housing$).$ His wife does not work. Suggest at least six audit steps and other approaches to help satisfy you there is no fraud in the payroll and personnel cycle.

Define Channel Stuffing and Cookie Jar Reserves. $($include citations$)$