Question

Inadequate controls over purchases and accounts payable can result in opportunities to embezzle from the organization.

a) True
b) False

Answer 1

Inadequate controls over purchases and accounts payable can result in opportunities to embezzle from the organization.

Step-by-step explanation:

The statement is true. Inadequate controls over purchases and accounts payable can create opportunities for embezzlement within an organization. When there are weak controls in place, individuals who have access to financial transactions may exploit the system to misappropriate funds for personal gain. This can include creating fictitious vendors, inflating invoices, or diverting payments to their own accounts.