Over last years, great attention has been developed to avoid the machines breakdown especially in the squirrel cage induction motor which suffer from different failures. The aim of this paper is to present a new method for the diagnosis of rotor bar breakage and end ring in induction machine fed by an inverter based on discrete wavelet transform applied on the voltage of an auxiliary winding as a new monitoring signature. The expression of the auxiliary winding voltage related to a small coil inserted between two stator phases is presented. The study is focused on the high-level signals of approximation and details coefficients. Thus, the evolution of any frequency of interest in the waveform is given in this paper. The method is validated by simulations of four broken bars and end ring cases under unloaded and loaded machine.