An excerpt from an internal audit observation indicates that travel advances exceeded prescribed maximum amounts. Company policy provides travel funds to authorized employees for travel. Advances are not to exceed 45 days of anticipated expenses. Company procedures do not require justification for large travel advances. Employees can, and do, accumulate large unneeded advances, resulting in unnecessary allocation of capital. In this audit observation, the element of an audit observation known as “effect” is:
a. Advances are not to exceed estimated expenses for 45 days.
b. Travel advances exceed prescribed maximum amounts.
c. Employees accumulate large, unneeded advances, resulting in unnecessary allocation of capital.
d. Unauthorized employees are given travel advances.