ICAEW ARF · Chapter 5 · Question 8 of 11
Which control best reduces the risk of payments being diverted by changing a supplier's bank details?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Changes to supplier bank details must be authorised by a senior manager and verified with the supplier using contact details already on file
Explanation
A common fraud involves false requests to change a supplier's bank details, so payments go to a fraudster. Independent authorisation of master file changes and verification with the genuine supplier using known contact details helps prevent this. The other controls relate to invoice accuracy, ledger integrity and receipt of goods, not standing data.
More Controls over revenue and purchases MCQs
- Q10Which of the following controls does NOT help to ensure the completeness of trade payables?
- Q11Which control best reduces the risk of a supplier invoice being paid twice?
- Q1Which control best reduces the risk of sales being made to customers who are unlikely to pay?
- Q2Which control best ensures that all goods despatched to customers are invoiced?
- Q3A company sends statements to all credit customers each month. Which risk does this control mainly address?