Which of the following measures is NOT recommended to mitigate billing schemes?

The option that is not recommended to mitigate billing schemes is prohibiting competitive bidding. Competitive bidding is a recognized practice that enhances transparency and fairness in the procurement process. By allowing multiple vendors to submit bids, an organization can obtain the best price and quality for goods and services. This process helps prevent collusion and favoritism, which are key elements of many billing schemes, where vendors might collude with employees to inflate prices or deliver substandard goods.

On the other hand, the other measures listed are effective practices for reducing the risk of billing schemes. Objective compensation for purchasing staff ensures that employees are rewarded based on quantifiable performance metrics rather than subjective criteria, reducing the temptation to engage in fraudulent activities for personal gain. Separating the purchasing and payment functions creates a system of checks and balances, making it more difficult for a single employee to commit fraud. Furthermore, implementing a fraud hotline encourages employees to report suspicious activities confidentially, thus promoting a culture of accountability and vigilance against fraudulent activities.

Together, these measures create an internal control environment that significantly lowers the risk of billing schemes and enhances overall organizational integrity.