An internal auditor observes a double payment transaction on a supplier invoice during an accounts payable engagement. Which of the following steps would be the most effective in helping the auditor determine whether fraud exists?
An internal auditor observes a double payment transaction on a supplier invoice during an accounts payable engagement. Which of the following steps would be the most effective in helping the auditor determine whether fraud exists?
To determine whether fraud exists, the most effective step would be to perform data analytics on the supplier's information, invoiced amounts, and payments performed. This approach allows the auditor to identify patterns, anomalies, and inconsistencies that could suggest fraudulent activity. By analyzing the data comprehensively, the auditor can pinpoint unusual transactions and verify their legitimacy, which is essential in identifying potential fraud.
Too many wrong answers I think the answers should be revised by the website, right answer is D