Question

Which of the following computer audit tests can be used to detect purchasing and receiving schemes?

a. Identifying dormant customer accounts for the past six months that show a sale in the last two months of the year
b. Calculating the ratio of the largest sale to the next largest sale by customer
c. Extracting all inventory coded as obsolete and possessing reorder points within the inventory system
d. All of the above

Answer 1

To detect purchasing and receiving schemes, one would extract all inventory coded as obsolete with reorder points in the inventory system, which could indicate fraud.

Step-by-step explanation:

The computer audit test that can be used to detect purchasing and receiving schemes is:

c. Extracting all inventory coded as obsolete and possessing reorder points within the inventory system.

This audit test helps in identifying potential fraudulent activities by highlighting inventory items that are marked as obsolete yet still have active reorder points, which could suggest a purchasing scheme where unnecessary items are being ordered for personal gain or to disguise other forms of theft or fraud.