An Employee Who Recently Transferred into the Internal Audit Activity

question 360

Multiple Choice

An employee who recently transferred into the internal audit activity has been assigned to audit the accounts payable system. Which function, if previously performed by this employee, would represent a conflict of interest?

• A) Monitoring the allowance for doubtful accounts.
• B) Writing procedures for the handling of duplicate payments.
• C) Signing timekeeping cards for subordinates.
• D) Reviewing shipping documents for accuracy.

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Definitions:

Clinton Administration

The executive branch of the U.S. government from 1993 to 2001, under President Bill Clinton, known for its efforts in economic policy, healthcare reform, and international diplomacy.

Foreign Policy

The strategies and policies that a country adopts in its interactions with other countries, regarding diplomacy, trade, and national security.

Stock Market Boom

A period of rapid and significant rise in the value of shares traded in stock markets, reflecting optimism and economic growth.

Proverbial Bubble

A phrase referring to an unrealistic or highly speculative situation that is likely to collapse or burst, much like an actual bubble.