According to IIA Guidance, Which of the Following Is Least

question 167

Multiple Choice

According to IIA guidance, which of the following is least likely to be a key financial control in an organization's accounts payable process?

• A) Require the approval of additions and changes to the vendor master listing, where the inherent risk of false vendors is high.
• B) Monitor amounts paid each period and compare them to the budget to identify potential issues.
• C) Compare employee addresses to vendor addresses to identify potential employee fraud.
• D) Monitor customer quality complaints compared to the prior period to identify vendor issues.

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Definitions:

Overhead Cost

Expenses related to the day-to-day running of a business that are not directly linked to a specific product or service but are necessary for the business to operate.

Activity Rates

The specific costs associated with particular business activities, measured to allocate resources or assess performance.

Direct-Labor-Hours

The total hours worked by employees that are directly involved in the manufacturing process.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead costs to products, calculated before the production period begins based on estimated costs and activity levels.