When performing audits to detect fraud, what is Julia focusing on by comparing payroll records with HR files?

By comparing payroll records with HR files, Julia is primarily focused on identifying the ghost employee scheme. This type of fraud occurs when fictitious employees are added to the payroll, or when actual employees are listed without performing any work. Ghost employees may be used to funnel money to the fraudster by collecting paychecks for individuals who do not actually exist or who no longer work for the company.

Auditing payroll records against HR files allows Julia to cross-verify the legitimacy of employees listed in the payroll. If discrepancies arise—such as paychecks being issued for employees who are not on the HR roster—this could indicate a potential ghost employee scheme. The thorough comparison ensures that only valid, active employees are receiving wages, thus helping to prevent payroll fraud linked to ghost employees.

Focusing on this specific comparison also helps uncover potential discrepancies that could otherwise be overlooked if payroll records are reviewed in isolation. This proactive approach enhances the detection of covert fraud schemes, particularly those where the employee exists only on paper.