CFE - Financial Transactions and Fraud Schemes Exam - Question 30

Companies should have vendor-monitoring procedures that are based on the red flags of the vendor schemes that pose the greatest risk.

Companies should not conduct background checks on vendors until after they are added to the vendor master file.

Companies should restrict the monitoring of their procurement activities to once a year to ensure comparability over time.

Companies should permit the person who maintains the vendor master file to have the authority to approve invoices for payment.