Which of the following computerized audit procedures best assists the engagement team in detecting asset misappropriations?
A)Creation of bank confirmations.
B)Tracing of recorded assets to source documents.
C)Search for duplicate payments.
D)Determination of obsolete inventory.

Question

Quizplus · Accepted Answer

Duplicate payments can be a red flag for asset misappropriation, as the perpetrator may be creating fake invoices or altering legitimate ones to funnel money out of the organization. Therefore, searching for duplicate payments using computerized audit procedures can help the engagement team detect potential fraud. The other options listed may be important audit procedures but are not specifically focused on detecting asset misappropriations.

Which of the Following Computerized Audit Procedures Best Assists the Engagement