Question

Of the following examples of fraud, which will be the  most difficult to prevent and detect? Assume the company enforces adequate segregation of duties.

a		The accounts receivable clerk does not record sales invoices for friends or family, so they can receive free goods.
b		An employee puts inventory behind the dumpster while unloading a vendor's delivery truck, then picks up the inventory later in the day and puts it in her car.
c		A mail room employee steals a check received from a customer and destroys the documentation.
d		A credit manager issues credit cards to himself and a staff accountant in the accounting office, and when the credit card balances are just under $1,000, the staff accountant writes off the accounts as bad debt. The credit manager then issues new cards.

When preparing a document flowchart, the names of organizational departments or job functions should appear in the

a		written narrative accompanying the flowchart.
b		column headings.
c		title of the flowchart.
d		right-hand margin.

Answer 1

1. Option D is the answer

2. Option B is the answer Document flowchart is a diagram which represents the step by step approach in solving a problem.

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