IIA-CIA-Part1 Exam QuestionsBrowse all questions from this exam

IIA-CIA-Part1 Exam - Question 297


One of the goals of the finance department is to ensure payments are made to designated receivers only. For that purpose, the following controls are established:

• The first clerk enters data to initiate a payment transaction to the bank.

• The second clerk compares the payment data entered with the original invoice and ap-proves the disbursement.

• The third clerk prints bank statements weekly and compares them to invoices processed.

What should the internal auditor conclude?

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Correct Answer: AC

The goal of ensuring payments are made to designated receivers only is achieved because segregation of duties is established in the payment process. This segregation, involving three different clerks with separate responsibilities (initiating the payment, approving the disbursement, and reconciling bank statements), decreases the risk of unauthorized payments and ensures a strong control environment.

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ElvooOption: C
Apr 26, 2024

Why C??