During an Audit of Executive Travel, an Auditor Noted That

question 120

Multiple Choice

During an audit of executive travel, an auditor noted that the president's travel expense reimbursements were approved by an executive secretary who reported to the president. The organization's reimbursement policy requires all travel expense reimbursements to be approved by the traveler's supervisor, but it does not address the president's reimbursements. Which of the following represents the auditor's best recommendation in this situation?

• A) The organization's reimbursement policy should be amended to grant the president's executive secretary the authority to approve the president's travel expense reimbursements.
• B) The approval policy for executive travel should be considered at the next meeting of the audit committee of the board of directors.
• C) The president's travel expense reimbursements should be reviewed and approved by the chief financial officer.
• D) The president's noncompliance should be considered immaterial.

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Definitions:

Licensing

The granting of a right or permission by one party to another for the use of a product, service, or intellectual property.

Exporting

The sale of goods or services produced in one country to customers in another country.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products.