The treasurer was misappropriating funds from the company. Upon receipt of collections in the form of cash and cheques from the collectors, the treasurer would deposit part of these funds to her own personal account.

Based upon the scenario:

1. Identify at least 2 methods of audit that can be used by the auditor. Justify your answer practically for each. (2 MARKS)

2. Explain the violations committed by the treasurer, what recommendation can you give to resolve these violations?