Which of the Following Would Probably Be the Least Effective

question 101

Multiple Choice

Which of the following would probably be the least effective control to mitigate the risk of paying a phony invoice payable for inventory purchases that were never made?

• A)Only pay from original invoices.
• B)Require three-way match for all inventory purchase invoices.
• C)Cancel all invoices and supporting documentation when paid.
• D)Establish strict access and authorization controls for the approved vendor master file.

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Definitions:

Purchase-Money Security Interest

A legal claim or lien on collateral that secures payment of the price of goods bought.

Secured Interests

legal claims or liens on collateral property or assets that secure the repayment of a debt or obligation.

Purchase-Money Security Interest

A security interest or claim on property that secures repayment of the money used to purchase the property, commonly seen in secured transactions.

Financing Statement

A document filed to give public notice of a security interest in personal property, securing payment or performance of an obligation.