CS Professional · Internal and Forensic Audit · Internal Audit of Specific Functions
During an internal audit of a manufacturing company's ERP system, the auditor finds that the same employee can create a vendor master record and also approve payments to that vendor. Which control weakness does this primarily represent?
The weakness is the absence of segregation of duties in access rights. When one user can both create a vendor and approve payments to it, fictitious vendor fraud becomes possible without independent checking. Backup, recovery and physical controls address different risks.
- AAbsence of segregation of duties in access rightsCorrect
- BLack of a disaster recovery site
- CInadequate data backup frequency
- DWeak physical security of the server room
Explanation
One person holding both vendor creation and payment approval rights breaks segregation of duties, which allows fictitious vendors to be created and paid. Backup, disaster recovery and physical security are separate control areas not implicated by these facts.
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