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Financial Accounting

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Internal Control - Collusion

FINACT-A36SZA

Which of the following situations would lead to collusion?

A

An employee tries to influence their manager’s comments on their evaluation. Every day, the employee brings the manager breakfast. The manager gives the employee a positive evaluation.

B

The accounts payable clerk and manager decide to submit false purchase orders for payment. The clerk prepares the purchase orders without the required documentation. The accounts payable manager knowingly approves the false purchase orders prepared by the accounts payable clerk.

C

An employee in accounts receivable receives the customer’s payment and steals the funds. The clerk does not record the payment in the general ledger. The customer sends in an additional payment. This payment is recorded in the general ledger using the date of the first payment received.

D

An employee in accounts receivable receives a customer payment and applies it to another customer’s account.