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…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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