You work in internal audit and have recently completed a fraud risk review. You have identified an
Question:
You work in internal audit and have recently completed a fraud risk review. You have identified an opportunity for the Accounts Receivable clerk to divert invoices and late notices so customers don't receive notice of payments not being recorded thereby concealing theft of cheques. Which of the following controls could mitigate this risk?
Requiring manager approval for cash and cheque disbursements
Requiring receipts to be submitted
Implementing segregation of duties so that employees executing sales do not also perform inventory counts and write-offs
Implementing segregation of duties so that employees receiving payments do not also send invoices to customers
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton