During the annual fraud risk assessment, an organization identified that an employee in the accounts payable department has the ability to both enter a new vendor into the system and process payments to the vendor. Which of the following is a preventative control that an auditor would propose to reduce the risk in this scenario?
A preventative control aims to prevent fraud before it occurs by segregating duties to ensure no single employee has too much control over any process. By ensuring that new vendors may only be added into the vendor management system by employees in the procurement department, the organization removes the ability for an accounts payable employee to create a fake vendor and process payments to that vendor. This reduces the risk of fraudulent activities significantly.
why not A????