Question 24

Explanation

Correct Answer: C. Develop a process to reconcile all the payments with invoices. Explanation: In a situation where segregation of duties cannot be enforced, it is crucial to establish compensating controls to mitigate the associated risks. One of the best recommendations is to develop a process to reconcile all the payments with invoices. This control ensures that the payments made align with the invoices received and helps detect any discrepancies or unauthorized payments. By reconciling payments with invoices, the organization can identify and address potential errors, fraudulent activities, or misappropriation of funds in the accounts payable process. Option A, increasing system access controls for accounts payable users, may help mitigate certain risks but does not directly address the lack of segregation of duties. Option B, implementing a dual approval process for all payments, introduces additional controls but may not completely compensate for the absence of segregation of duties. Option D, conducting periodic reviews of accounts payable transactions by management, is a good practice but may not be as effective as the recommended compensating control of reconciling payments with invoices. Therefore, developing a process to reconcile all the payments with invoices is the best recommendation as it provides a control mechanism to validate the accuracy and integrity of the accounts payable transactions, compensating for the lack of segregation of duties.