Running due diligence checks on business client

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Reference no: EM133971206

Question

You are running due diligence checks on a business client, a small, but high-value consultancy. You are reviewing their invoices against their account balance and their declared business purpose. Invoices to one of their clients, a small manufacturing firm, have been paid monthly since the account was opened, just over 12 months ago. The invoices match the expected amount; however the descriptions just say "consultancy" and it's unusual for a small manufacturer to require this amount of long-term consultancy. Based on the scenario, select which statements would be most effective and least effective.

A. Research your client's specific services to understand if these match their client's needs.

B. Accept the invoices as legitimate because the stated amount match the expected amounts.

C. Ask one of your colleagues for a second opinion on whether these invoices are legitimate.

Reference no: EM133971206

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