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IIA Exam IIA-IAP Topic 5 Question 4 Discussion

Actual exam question for IIA's IIA-IAP exam
Question #: 4
Topic #: 5
[All IIA-IAP Questions]

Which of the following scenarios would be the strongest indicator of fraud in an accounts payable process?

Show Suggested Answer Hide Answer
Suggested Answer: C

Comprehensive and Detailed Step-by-Step Explanation:

Address Matches an Employee's Residence: This is a strong indicator of fraud, as it suggests the possibility of a fictitious vendor created to divert funds to the employee.


Other Options:

Option A: Missing documentation may indicate poor record-keeping but is not a strong indicator of fraud on its own.

Option B: Delayed invoices might indicate inefficiencies, not fraud.

Thus, the correct answer is C. The address on one of the vendor invoices matches an employee's residential address.

by Louvenia at Jan 27, 2025, 07:16 AM

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Elli
5 months ago
Lacking documentation on travel expenses? That's an amateur move. Real fraudsters would have forged those receipts ages ago.
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Venita
4 months ago
A) The accounts payable manager was unable to provide documentation relating to travel expenses on one of the samples selected.
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Annmarie
4 months ago
C) The address on one of the vendor invoices matches an employee's residential address.
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Noe
5 months ago
B) The invoices submitted by one of the organization's vendors are more than six months old.
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Denae
5 months ago
A) The accounts payable manager was unable to provide documentation relating to travel expenses on one of the samples selected.
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Owen
5 months ago
I see your point, Inocencia. It could indicate potential fraud as well.
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Inocencia
5 months ago
But what about option A? Not providing documentation for travel expenses seems suspicious too.
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Kathrine
5 months ago
Haha, the old invoices are pretty sketchy too. Maybe the vendor is living in the past, or just trying to pull a fast one.
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Corrina
5 months ago
B) The invoices submitted by one of the organization's vendors are more than six months old.
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Crista
5 months ago
A) The accounts payable manager was unable to provide documentation relating to travel expenses on one of the samples selected.
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Edelmira
5 months ago
I agree with Man, having a vendor invoice with an employee's address is a red flag.
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Man
6 months ago
I think option C is the strongest indicator of fraud.
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Kati
6 months ago
I agree, the address match is the most suspicious. It could be a shell company set up by an employee to siphon off funds.
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Lai
6 months ago
The address match on the vendor invoice is definitely the strongest indicator of fraud. That's a clear conflict of interest that needs to be investigated further.
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Carey
5 months ago
C) The address on one of the vendor invoices matches an employee's residential address.
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Terina
6 months ago
B) The invoices submitted by one of the organization's vendors are more than six months old.
upvoted 0 times
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Elza
6 months ago
A) The accounts payable manager was unable to provide documentation relating to travel expenses on one of the samples selected.
upvoted 0 times
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