An Internal Auditor Is Preparing a Draft Observation Based on Her

question 138

Multiple Choice

An internal auditor is preparing a draft observation based on her assessment of an accounts payable process. Which of the following is a process recommendation?

• A) Authorization policy for accounts payable was not followed for payments above $10, 000.
• B) Authorization policy requires two levels of approval for all payments above $10, 000.
• C) Because of non-compliance with authorization policy, inappropriate payments may be made for payments above $10, 000.
• D) The accounts payable authorization actions for all payments should be automated.

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