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To deter kickback schemes, an organization should implement which of the following procedures?

a) Separate the purchasing, authorizing, and cash disbursement functions
b) Track purchase levels by vendor
c) Compare the prices paid for goods and services to market rates
d) All of the above

1 Answer

3 votes

Final answer:

To deter kickback schemes, organizations should implement procedures like separating functions, tracking vendor purchases, and comparing prices to market rates. The correct option is d) All of the above.

Step-by-step explanation:

To deter kickback schemes, an organization should implement a series of procedures that ensure proper oversight and separation of powers within financial operations. Specifically:

  • Separating the purchasing, authorizing, and cash disbursement functions ensures that no single individual has control over all aspects of a transaction, reducing the opportunity for fraudulent activity or collusion.
  • By tracking purchase levels by vendor, an organization can identify unusual patterns or anomalies that could indicate preferential treatment or kickbacks.
  • Comparing the prices paid for goods and services to market rates is another key procedure. This safeguards against overpaying as a result of collusion between staff and vendors.

When these strategies are combined, they create a comprehensive barrier against kickback schemes. Therefore, the correct option in the final answer to the question is d) All of the above.

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