An internal auditor has suspicions that some fictitious vendors have been created in the organization's computer system. Which of the following would be the best technique to detect this fraud?
A.
Review for duplicate invoice numbers, duplicate dates, and duplicate amounts
B.
Run checks to find matches between vendor and employee addresses
C.
Check for recurring requests for refunds where invoices are paid twice
The best technique to detect fictitious vendors in the organization's computer system is to run checks to find matches between vendor and employee addresses. This method is effective because fictitious vendors often have addresses that match those of employees creating them. This kind of analysis targets the direct linkage between fraudulent activities and internal entities, which is a common red flag in vendor fraud scenarios.
Association of Certified Fraud Examiners (ACFE) - Techniques for Fraud Detection
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