Extended story: late-month journals in a manufacturing group
The constraint
A regional manufacturer saw unexplained credit entries in two subsidiaries during the final three days of two consecutive months. Internal audit had sampled invoices but not the approval path for manual journals above NT$500,000.
What we did
Under a fraud review engagement, we mapped preparers and approvers, then tested every manual journal above that threshold for six months. Supporting packs were incomplete for eleven items; three shared the same secondary approver who was also a related-party contact for a vendor.
Outcome
Management paused that approval path, recovered one duplicated payment, and asked counsel to review the related-party link. Our memo stated clearly which items remained unexplained because records were missing—so the committee knew the limit of the evidence.