An Internal Auditor Is Planning an Operational Audit of the Accounts

question 440

Multiple Choice

An internal auditor is planning an operational audit of the accounts payable function. Which of the following best mitigates the risk of the organization being a victim of disbursement fraud by employees?

• A) Accounts payable payment records are checked against supplier invoices.
• B) Accounts payable are aged by vendors.
• C) The accounts payable trial balance is reconciled to the general ledger.
• D) The accounts payable function is properly segregated from the cash custody function.

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Definitions:

American Experience

The diverse and complex history, culture, and social fabric unique to the United States, formed through its development and various influences over time.

Free Blacks

Free Blacks were African Americans who were not enslaved before the Civil War in the United States, living both in the North where slavery was generally abolished and in the South where they were a small minority.

Enslaved Blacks

Individuals of African descent who were forcibly brought to and held in bondage in various parts of the world, particularly in the Americas, from the 16th to the 19th century.

War Effort

The combined endeavors of civilians and the military during wartime to support and win a conflict, including production, fundraising, and moral support activities.