Test Your Vendor Information Management Skill

Thank you for taking VIMCOE’s introductory Quiz. This is a sampling of the kind of information explored in VIMCOE’s Accredited Vendor Information Management Course. The thorough course steps candidates through all areas of vendor information management. Lessons included quizzes. And upon course completion, candidates take a 70-question exam to become Accredited Vendor Information Professionals.

So how did you do? Here are the quiz questions with the correct answers: 

1. Upon notification of a new vendor, which of the following is the first step the vendor information practitioner or specialist should take?

Answer: d – Before spending time on anything else, first check your vendor master file to see if the vendor is already there. 

2. Risks specifically related to vendors and their information include which of the following: I. Duplicate payments; II. Doing business with a sanctioned entity; III. Business email compromise

Answer: d – All three are risks related to vendors and their information.

3.  The right timing of vendor onboarding is important to avoid the risk of which of the following:

Answer b — Paying a sanctioned or excluded party.  Onboarding at the start of a vendor relationship allows you time to adequately screen the vendor, including for sanctions.

4. Which of the following most accurately reflects the percentage of organizations that report attempted or successful fraud attacks against them?  

Answer: c – According to the FBI, fraud attempts are reported by between 60 and 80 percent of organizations each year. That’s three to four of every five organizations. 

5. Which of the following is the best time to gather and validate compliance-related information for a new vendor?

Answer: b – After a vendor is selected. Again, this allows the most time to verify and validate a vendor.

6. After an organization has done an initial review of all vendors in its vendor master against OFAC’s sanction lists, which of the following best describes what it must do to remain in compliance with OFAC’s sanctions programs?  

Answer: d — Check all new vendors against the OFAC lists and check new OFAC list additions against all vendors in the master file—this is the thoroughness required. It is not just new vendors that you must screen. Some corporations have been fined because a vendor that was not sanctioned at the start of a business relationship were subsequently sanctioned, but the organizations did not check their existing vendors and continued to do business with now-sanctioned entities. 

7. For non-U.S. persons, which of the following is reportable U.S. source income?

Answer: d – A U.S. college Fellowship paid to a German professor living in Massachusetts. The key for reportable payments to non-U.S. citizens is the “source” of the income; money earned while IN the U.S. is U.S.-source income. 

8. Which of the following represents the most accurate understanding of IRS Form 972CG?

Answer: c – The form communicates the IRS’s proposed fines for apparent reporting failures.

9. If an urgent check request comes in concerning a new vendor, which of the following is the correct action to take?

Answer: b – When the urgency requires interruption, it is nevertheless important (often more so) to still follow controls.

10. “Vendor bank account verification” involves confirming each of the following, EXCEPT:

Answer: d – Bank account verification should include verifying the account owner, the account number, and the bank routing number.  The vendor contact is important, but the other three are most essential in confirming the vendor bank information provided. 

11. Which of the following is the most important thing you can do to avoid falling victim to BEC and VEC?

Answer: c – Independently verify vendor instructions outside of the received communication. 

Are you ready to get certified? Whether you are a seasoned professional who wants to review a few areas or study a few topics further, or you are new to vendor information management and need to start at the beginning, this course is for you. 

This course will teach you the responsibilities, regulations, controls and consequences of vendor information gathering and management. It covers how to guard against error, fraud and noncompliance and how to protect your organizations assets.

Become an accredited vendor information professional (AVIP). Earning your AVIP demonstrates your achievement in attaining the knowledge required for successful vendor information management. Sign up today!