During an Internal Audit, an Organization's Processing Department Is Found

question 57

Multiple Choice

During an internal audit, an organization's processing department is found to have incidences of both duplicate invoices and notices from customers that purchased goods were not received. The department under review insists that some of these reports are false and that others were isolated oversights due to understaffing. Which of the following tests would best help the internal auditor detect fraudulent activity?

• A) Check inventory levels.
• B) Search for gaps in check numbers.
• C) Compare vendor summaries.
• D) Review raw material purchase quantities.

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Definitions:

Monochronic

A perception of time as linear and segmented into fixed, sequential units, where tasks are approached one at a time.

Informal

A term describing actions, relations, or communication that occur without official or formal structures or procedures.

Regressive

Characterized by moving backward or returning to a previous, less advanced state or condition.

Institutional Collectivism

The degree to which organizational and societal institutional practices encourage and reward collective distribution of resources and collective action.