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A recent “KPMG Fraud Survey” found that organizations are reporting more experiences of fraud than in prior years and that three out of four organizations have uncovered fraud. The NYS Office of Mental Health's Bureau of Audit has provided the following list of internal controls to assist you in preventing and detecting fraud at your agency.
Which of the following controls most likely would reduce the risk of diversion?Which of the following internal controls most likely would reduce the risk of diversion of customer receipts by an entity's employees? Explanation: A lockbox system is the best means of preventing fraud of cash by employees because they will never have direct access to cash receipts.
Which of the following control activities is not usually performed with regard to vouchers payable in the accounting department?Which of the following control activities is not usually performed with regard to vouchers payable in the accounting department? Controlling the mailing of the check and remittance advice.
Which of the following controls should prevent an invoice for the purchase of merchandise from being paid twice?Which of the following controls should prevent an invoice for the purchase of merchandise from being paid twice? The check signer reviews and cancels the voucher packets.
Which internal control procedures are most likely to be used by the company to maintain accurate inventory records?Which of the following internal control procedures most likely would be used to maintain accurate inventory records? Periodic inventory counts are used to adjust the perpetual inventory records.
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