An excerpt from an audit observation indicates that travel advances exceeded prescribed maximum amounts. Company policy provided travel funds to authorized employees for travel. Advances are not to exceed 30 days of anticipated expenses. Company procedures do not require justification for large travel advances. Employees can, and do, accumulate large unneeded advances. In this audit observation the element of an audit finding known as "effect" is
a) Unauthorized employees are given travel advances
b) Advances are not to exceed estimated expenses for 30 days.
c) Procedures do not require justification for large advances.
d) Employees accumulate large, unneeded advances.
Answer: d) Employees accumulate large, unneeded advances.
Business
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