CAPA Fraud Prevention and Detection 2

Question 1

Which practice best prevents unauthorized changes to the vendor master file?

Accepted Answer

Restricting vendor master file changes to a designated individual separate from invoice processors

Answer

Allowing AP staff to update vendor records as needed

Answer

Requiring vendors to update their own records online

Answer

Archiving vendor records annually

Question 2

What is a 'lapping' scheme in accounts payable?

Accepted Answer

Covering theft by applying subsequent payments to conceal earlier stolen funds

Answer

Paying the same invoice twice

Answer

Creating a fictitious vendor and routing payments there

Answer

Submitting personal expenses as business expenses

Question 3

Which of the following is an example of an internal AP fraud indicator during invoice review?

Accepted Answer

Invoice lacks a purchase order number for a large purchase

Answer

Invoice received on company letterhead

Answer

Invoice references a contract number

Answer

Invoice submitted within the payment terms window

Question 4

What is the role of a 'positive pay' system in AP fraud prevention?

Accepted Answer

It matches checks presented for payment against an authorized list issued by the company to detect altered or counterfeit checks

Answer

It approves invoices automatically based on vendor history

Answer

It ensures vendors are paid on their preferred schedule

Answer

It verifies that purchase orders match receiving reports

Question 5

An AP clerk submits reimbursement claims for the same business meal multiple times across different expense reports. This is best categorized as:

Accepted Answer

Duplicate expense reimbursement fraud

Answer

Skimming

Answer

Conflict of interest

Answer

Shell company fraud

Question 6

Which control specifically helps prevent 'check tampering' fraud in AP?

Accepted Answer

Dual signature requirements and controlled check stock storage

Answer

Three-way invoice matching

Answer

Automated invoice approval workflows

Answer

Vendor onboarding due diligence

Question 7

Which organizational policy most directly supports a culture of fraud prevention in AP?

Accepted Answer

Establishing a confidential whistleblower hotline for reporting suspected fraud

Answer

Paying all invoices within 15 days

Answer

Digitizing all paper invoices

Answer

Centralizing all AP functions in one department