Payment of creditors

In addition to the above measures taken by management, the financial manager is also concerned about the risk of EFT (Electronic Funds Transfer) payments to fictitious creditors. Your audit team recommended that the company reviews and improves its controls over EFT payments.

1.3 Respond to the financial manager using a memo and explain the internal controls that can be implemented to mitigate the risks associated with the EFT payments to fictitious creditors. (10)

Presentation (1)