Exam IIA-CIA-Part1 topic 6 question 33 discussion

Actual exam question from IIA's IIA-CIA-Part1

Question #: 33
Topic #: 6

Which of the following control methods is effective in reducing the risk of purchasing-scheme fraud?
1. Periodically reviewing the vendor list for unusual vendors and addresses.
2. Segregating duties for amount purchasing, receiving, shipping, and accounting.
3. Validating sequential integrity of purchase orders.
4. Verifying the validity of invoices with post office box addresses.

A. 1 and 2 only
B. 3 and 4 only
C. 1, 2, and 4 only
D. 1, 2, 3, and 4

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Suggested Answer: B 🗳️

by Tinananalee at Sept. 10, 2020, 5:02 a.m.

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John1237

1 month, 2 weeks ago

Option 1 is periodic ( especially detective). Option 2 does not cancel the inherent limitations of internal control (collusion, management override, human error of judgment, cost/benefit balance). Options 3 and 4 are close and permanent controls. All the four options are internal controls, but options 3 and 4 are more effective.

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