An organization has a policy requiring two signatures on all checks written for amounts in excess of $10, 000. When evaluating controls over disbursements, an auditor would conclude that a greater risk exists if.
A.
The auditor located two checks for $9, 000 each that contained one authorized signature.
B.
The $10, 000 was an immaterial amount to the organization and very few cash disbursements required an amount in excess of $10, 000.
C.
The director of accounting was not one of the authorized signers.
D.
There were several instances in which successively numbered checks for amounts between $5, 000 and $10, 000 were made payable to the same vendor.
One of the items being asked during the walkthrough is whether there is a review of transactions from same vendor in the same period lower than the threshold. So d is correct
The problem here is the splitting of funds that can help to bypass the threshold that triggers controls.
upvoted 2 times
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Lynai
8 months, 3 weeks agoJohn1237
1 month, 1 week ago