One of the Ways to Prevent the Use of Fictitious

question 53

Multiple Choice

One of the ways to prevent the use of fictitious suppliers to steal company funds is by

• A) having adequate network access controls to prevent unauthorized access to transaction files.
• B) ensuring that accounts payable programs are available only in source code.
• C) having software automatically check for duplicate invoice numbers before payment.
• D) having authorized personnel carefully scrutinize documentation supporting payments.

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Definitions:

Bankers' Acceptance

A short-term financial instrument issued by a company that is guaranteed by a commercial bank.

Treasury Note

A type of U.S. government debt security with a fixed interest rate and maturity between two to ten years.

Eurodollar

U.S. dollar-denominated deposits at foreign banks or foreign branches of American banks, used widely in international lending and financing.

LIBOR

The London Interbank Offered Rate, a benchmark interest rate at which major global banks lend to one another.