One way to prevent employee collusion with a dishonest vendor is to:Make sure the employee procuring the services is not the one issuing the paymentnot pay an invoice that lacks the ordering employee’s initials without finding out whether the services were performed or the goods receivedcall the vendor—no matter how long you have been using it—if anything looks out of orderall of the above

Internal control has an inherent limitation such as collusion among the employees and vendor,…

Answered: One way to prevent employee collusion…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 10CYBK

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One way to prevent employee collusion with a dishonest vendor is to:

Make sure the employee procuring the services is not the one issuing the payment
not pay an invoice that lacks the ordering employee’s initials without finding out whether the services were performed or the goods received
call the vendor—no matter how long you have been using it—if anything looks out of order
all of the above

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