A financial institution suspects that a manager has been crediting customer accounts without authorization. Which of the following is the MOST effective method to validate this concern?
A financial institution suspects that a manager has been crediting customer accounts without authorization. Which of the following is the MOST effective method to validate this concern?
Discovery sampling is the most effective method in this scenario. This type of sampling is specifically designed to detect and uncover fraud or irregularities within a population. Given that the institution suspects unauthorized activities, discovery sampling can effectively and efficiently identify any unauthorized credits being applied to customer accounts.
By employing stop-or-go sampling, auditors can systematically review a sample of customer accounts and transactions, assessing whether unauthorized credits have occurred.
B. Discovery sampling is specifically designed to detect and uncover fraud or irregularities in a population.