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Mr Kan is an auditor in KPMG, Malaysia. Mr Kan conduct audit to one of the major client for KPMG, Kamuda Bhd (Kamuda). Kamuda is selling and distribute the water dispenser to whole  country and selling other space part of water dispenser such as water filter, water taps and holes for  water filter and water dispenser. 

 

Mr Kan is first year conduct audit to Kamuda in this year. Mr Kan is discover some fraud in Kamuda  which is practice by marketing director in Kamuda, Mr Soh. Mr Soh is create fictitious sales to  increase the revenue in marketing department in order to achieve the sales target set by the board of  director. 

The commission is a significant amount to company which is relevant and material to shareholder.  Mr Kan is discuss with the senior of audit team, Miss Laila. Miss Laila is suggest have a meeting  with audit partner and invite a forensic accountant to investigate the fraud because Mr Soh is very  experience and very wisely to conceal the fraud. 

Mr Kan not able to collect sufficient appropriate audit evidence on the fictitious sales. He is wonder  whether forensic accountant can collect sufficient appropriate evidence on the fraud activity. 

Questions:

What is forensic accountant. based on the scenario?

Explain the mindset of forensic accountant. based on the scenario?

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