You are hired as a consultant to review the operations of a small company with 3

Question

You are hired as a consultant to review the operations of a small company with 3 locations. The owner has allocated a budget for each location. If the location requires additional funding, the owner usually requests that the manager submit a budget for request for additional funds in the form of an excel spreadsheet. The owner has a bad feeling that 1 of the locations, which has requested funding 3 times more frequently than the other 2, is inflating the budget that he sends over. As a consultant, what steps might you take to review this assumption and to help the owner understand what might be going on? Are there ways to utilize accounting software, such as Excel, to spot any issues in general, or even in the spreadsheet that the owner receives?

Explanation / Answer

Ans: The best way to detect any fraud with funds is that owner should ask for the list of top spending items and top investment items along with proper bills and invoices. Also, owner should ask the detailing of such items from other locations and should try to compare it with other locations data, for this comparison owner can use excel chart and Pivot tables features in excel. Apart from this owner can pay individual visit to the suspected locations and can physically verify the details beings submitted by the location’s managers. If owner is willing to spend some extra bucks then he can go for some accounting software such as tally, that will at least present the data in systematic way and may hint for any frauds. These are some of the steps owner can take to detect any fraud if happening.

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