Your are currently engaged in planning the audit of the payroll system of Ujenzi Ltd a manufacturing company, for the year ending 30 June 2005, Ujenzi Ltd‘s payroll system is fully computerized. Required: List any two fraudulent activities likely to be perpetrated in relation to Ujenzi Ltd‘s payroll

  • Existence of ghost workers. In this case, there could be workers who‘ve passed away but their names still appear on the payroll. Some party somewhere could be benefiting from the remissions without knowledge of the company.
  •  The absence of an audit trail may be a loophole for the accountants to embezzle some money and alter the programs to disguise the fraud



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