An Organization Has a Policy Requiring Two Signatures on All

question 268

Multiple Choice

An organization has a policy requiring two signatures on all checks written for amounts in excess of $10, 000. When evaluating controls over disbursements, an auditor would conclude that a greater risk exists if.

• A) The auditor located two checks for $9, 000 each that contained one authorized signature.
• B) The $10, 000 was an immaterial amount to the organization and very few cash disbursements required an amount in excess of $10, 000.
• C) The director of accounting was not one of the authorized signers.
• D) There were several instances in which successively numbered checks for amounts between $5, 000 and $10, 000 were made payable to the same vendor.