Which of the following would probably be the least effective control to mitigate the risk of paying an invoice payable to a phony vendor for inventory purchases, mailed to the company by an employee attempting to commit fraud?
A) Only pay from original invoices.
B) Cancel all invoices and supporting documentation when paid.
C) Strict access and authorization controls for the approved vendor master file.
D) Require three-way match for all inventory purchase invoices.
Answer: A) Only pay from original invoices.
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The deregulation of the late 1970s involved many parts of our economy and
a. were aimed at protecting big firms. b. were particularly hard on small businesses. c. resulted in the entry of many small firms into industries that for years had been dominated by giant companies. d. led to a wave of unlawful corporate behavior.
Tulsa Corp reported the following information for 2015 and 2016. Interest payable, December 31, 2015 $ 5,700 Interest payable, December 31, 2016 6,200 Interest expense—2016 12,250 How much cash was paid for interest during 2016?
a. $11,750 b. $12,250 c. $12,500 d. $12,750