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During an accounts payable audit engagement, the internal auditor found that vendor invoices are always paid 30 days after the invoice date, regardless of the vendor's payment terms. The auditor also discovered that accounts payable employees are not comparing vendor invoices received to previous vendor invoices prior to payment. Based on the auditor's observations, what are the potential risks?
Correct Answer: A
Comprehensive and Detailed Step-by-Step Explanation: * Lost Payment Discounts: By paying all invoices after 30 days, regardless of terms, the organization risks losing early payment discounts offered by vendors, leading to poor cash management.