IIA Internal Audit Practitioner IIA-IAP Question # 1 Topic 1 Discussion

IIA Internal Audit Practitioner IIA-IAP Question # 1 Topic 1 Discussion

IIA-IAP Exam Topic 1 Question 1 Discussion:
Question #: 1
Topic #: 1

During an accounts payable audit engagement, the internal auditor found that vendor invoices are always paid 30 days after the invoice date, regardless of the vendor's payment terms. The auditor also discovered that accounts payable employees are not comparing vendor invoices received to previous vendor invoices prior to payment. Based on the auditor's observations, what are the potential risks?


A.

Poor cash management due to potentially lost payment discounts


B.

Poor cash management due to potentially paying fraudulent invoices


C.

Poor cash management due to potentially paying the wrong vendors


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