Which of the following analytical techniques would an internal auditor use to verify that none of an organization's employees are receiving fraudulent invoice payments?
Which of the following analytical techniques would an internal auditor use to verify that none of an organization's employees are receiving fraudulent invoice payments?
To verify that none of an organization's employees are receiving fraudulent invoice payments, the most appropriate analytical technique would be to perform duplicate testing. This technique involves reviewing transaction records to identify any duplicate payments or entries, which could indicate fraudulent activities such as multiple payments for the same invoice. This method is directly relevant to detecting fraud in invoice payments, unlike gap testing, joining different data sources, or calculating statistical parameters.
Seems like it should be C. Among the given choices, the most effective analytical technique an internal auditor could use to verify that none of an organization's employees are receiving fraudulent invoice payments would be to perform duplicate testing. Duplicate testing involves conducting a review of all transaction records to check for any duplicates. This is an effective means of identifying fraudulent activity, such as multiple payments for a single invoice, which could indicate an embezzlement scheme. On the other hand, gap testing, joining different data sources and calculating statistical parameters, although useful for other purposes, would not be as effective for this specific task. Anyone agree?