Having an Adequate Program to Report Fraud Is Vital to the Success

question 13

Multiple Choice

Having an adequate program to report fraud is vital to the success of an organization's efforts to detect and deter fraud. Which of the following is a key point that should be emphasized in such a program?

• A) If everyone works together, fraud, waste, and abuse can be completely eliminated within the organization.
• B) There is an exact method for reporting suspected wrongdoing.
• C) Penalties may be assessed on employees who report inaccurate information, regardless of intent.
• D) All of the above

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Definitions:

Direct Materials

Raw materials that can be directly traced to the production of a specific product or service.

Work in Process

The total value of materials and labor for products that are partially completed but not yet ready for sale.

Materials

Raw inputs or basic substances used in the manufacturing or production process to create finished goods.

Materials Requisition

The document or electronic request used within a company to authorize the withdrawal of materials from inventory for use in the production process or other internal use.