A proactive computer audit test to detect when a company has a high incidence of invoice payments below an approval limit that may be reviewable by an audit could include:

Question

Quizplus · Accepted Answer

Stratifying vendor payments by approval limits directly under the approval limit allows for a targeted approach to identifying payments that may require additional review, while not requiring an intensive audit of all invoices. This is a proactive measure that can help detect issues early on. Conducting an intensive audit of 100 percent of all invoices is impractical and inefficient. Stratifying vendor payments by approval limits directly over the approval limit would not necessarily help detect payments below the limit that may still be reviewable. Asking the payables clerk to sign a financial disclosure document may be part of an overall control process, but it does not directly address the issue of identifying payments below the approval limit that may require review.

A Proactive Computer Audit Test to Detect When a Company