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CTP · Question #408

CTP Question #408: Real Exam Question with Answer & Explanation

The correct answer is B. Segregation of duties. See the full explanation below for the reasoning.

Question

  • (Topic 5) Following the latest round of cost-cutting measures at ABC Corporation, the Treasury Department retained a headcount of 2 individuals. While the analyst was out sick, she gave her password to her Manager so that payments could be released via the bank's wire transfer system. The Manager sent 3 wires out with incorrect banking instructions. The problem was not identified until the angry suppliers called several weeks later demanding payment. The corporation has not yet recovered the $130,000 sent to erroneous accounts. In this instance, which control failed for ABC Corp.?

Options

  • AThree-way matching
  • BSegregation of duties
  • CReconciliation of the bank statement
  • DSecurity within the bank's wire system

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