Question

Accounting Information Systems

Which of the following is not considered a risk inherent in the expenditure cycle?

A. Collusion between vendor and receiving clerk

B. Intentional errors in ordering goods by purchasing clerk

C. Unintentionally errors in recording items received

D. Shipping goods to mailing address and not shipping address

When proper segregation of duties is in place fraud is likely to occur; however segregation of duties can be thwarted through ..............?

A. Reconciliation

B. Machine Failure

C. Confidence

D. Collusion

Continuous monitoring is the process and technology used to identify compliance and risk issues associated with an organization's financial and operational environment. What type of control this ?

A. Preventative Control

B. Corrective Control

C. Detective Control

D. Intrusive Control

Answer 1

Answer for 1)

My answer is option D.

Here shipping goods to wrong address will not be a problem as it can be transferred and amount is paid only after receipt of goods.

Answer for 2)

My answer is option D.

Collusion between two or more employees which means employees corporation each other in fraud.

Answer for 3)

My answer is option C.

These are detective controls as they helps in detecting the risks existing.