An Internal Auditor Is Assessing the Risk of Employees Falsifying

Multiple Choice

An internal auditor is assessing the risk of employees falsifying reimbursement requests for business-related meals or travel. Which of the following procedures would the internal auditor most likely perform first?

A) Review the supplemental documentation provided for a sample of reimbursement requests.
B) Interview the payroll/accounting supervisor to determine what controls exist to prevent fraud.
C) Determine whether or not the payroll/accounting department has been subject to regular review.
D) Establish a flowchart of the payroll/accounting functions that include any controls currently in place.