Exam IIA-CIA-Part2 topic 5 question 448 discussion

Actual exam question from IIA's IIA-CIA-Part2

Question #: 448
Topic #: 5

Below is a flowchart detailing an organization's bank reconciliation process. Which of the following conclusions can be drawn from the flowchart?

A. There is a conflict in the segregation of duties between preparing bank reconciliations and posting payments to the accounting books.
B. There is an appropriate segregation of duties in the treasury department during the bank reconciliation process.
C. There is a large workload for the treasury accountant during the bank reconciliation process.
D. Bank statements should be obtained at a higher level, such as through the treasury supervisor.

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Suggested Answer: B 🗳️

by Kozy at July 25, 2025, 2:45 p.m.

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Kozy

1 week ago

Selected Answer: A

According to the flowchart: The Treasury Accountant is responsible for: Posting incoming and outgoing payments into the financial system Performing bank reconciliations to identify unreconciled items This is a segregation of duties conflict, because: The same person both records transactions and reconciles them, which increases the risk of errors or fraud going undetected.

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