An investment portfolio manager has the authority to use financial derivatives to hedge transactions but is not supposed to take speculative positions. however, the manager launches a scheme that includes (1) taking a position larger than required by the hedge, (2) putting the speculative gains in a suspense account, and (3) transferring the funds to a nonexistent broker and from there to a personal account. which of the following engagement procedures is least effective in detecting this fraud?
(a) examine individual trades to determine whether the trades violate the authorization limit for the manager.
(b) sample individual trades and determine the exact matching of a hedge. schedule and investigate all differences.
(c) sample all debits to the suspense account and examine their disposition.
(d) sample fund transfers to brokers and determine if the brokers are on the organization's authorized list for transactions.