Donna Boyd Is an Internal Auditor for GDP, Inc

question 26

Multiple Choice

Donna Boyd is an internal auditor for GDP, Inc., an electronics manufacturer. While conducting a routine review of the company's inventory costing, she discovers that the cost of one of the parts they use in manufacturing DVD players has been steadily increasing over the last six months and is now much higher than the general market price. Additionally, she notices that the company has been heavily favoring one specific supplier for that part. Based on these circumstances, what type of fraud scheme may be occurring at GDP?

• A) Kickbacks
• B) Conflict of interest
• C) Shell company
• D) Any of the above

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Definitions:

Subordinate Evaluations

Assessments of an employee's performance, skills, and competencies, typically conducted by their direct supervisors or managers.

Compensation Decisions

Refers to the process by which an organization decides the amount and type of remuneration to offer its employees.

Promotions

A process in which an employee is moved to a higher position within the company, typically involving increased responsibilities and pay.

Reliable

Pertaining to the consistency and dependability of something or someone, particularly in performing functions or yielding results.