Evaluate whether the Financial director treatment of traffic fines constitutes a reportable irregul

im an auditor of a co , and have been appointed as an auditor for a co, to audit the books. I was brought to my attention that no substantive documentation could be found for an amount of R900 000, which was claimed as a deduction when the second provisional tax return which was completed by the financial manager and signed off by the financial director. THis amount is material. It was further investigated that the total of the traffic fines issued during the financial year to the delivery vehilce drivers was for fines, parking , etc. The Financial director stated that the fines were issued in the production of income. she argued the faster the deliveries were made the more profitable the co.would be.
Asked Sep 19, 2013
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Answered Sep 10, 2017

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