Inadequate controls over purchases and accounts payable can result in opportunities to embezzle from the organization.

Question

Quizplus · Accepted Answer

This statement is true. If an organization does not have adequate controls over purchases and accounts payable, it could allow for opportunities for individuals to embezzle funds from the organization. Adequate controls should include policies and procedures, segregation of duties, and proper authorization and approval processes to prevent fraudulent activities.

Inadequate Controls Over Purchases and Accounts Payable Can Result in Opportunities