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Question 13 : F-C

Fact Pattern:  A fraud was perpetrated in a moderate-sized organization when the accounting clerk was delegated too much responsibility. During the year, the organization switched suppliers of a service to a new vendor. The accounting clerk continued to submit fraudulent invoices from the “old supplier.” Because contracting for services and approval of supplier invoices had been delegated to the clerk, it was possible for the clerk to continue billings from the old supplier and deposit the subsequent checks, which the clerk was responsible to mail, into a new account the clerk opened in the name of the old supplier. The clerk was considered an excellent employee and eventually was improperly given the added responsibility of preparing the department budgets. This added responsibility allowed the clerk to budget for the amount of the fraudulent payments.

 

Question: 13 Which of the following engagement procedures is most likely to detect the fraud?
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