Which of the Following Is a Symptom of Potential Inventory

question 22

Multiple Choice

Which of the following is a symptom of potential inventory fraud?

• A) An auditor observing a weakness in the inventory-receiving procedures
• B) An auditor observing an override of an internal control
• C) An auditor observing inadequate physical controls in the warehouse
• D) An auditor observing the lack of authorization required for purchases of inventory under $1,000

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Definitions:

Spillover Effect

The influence of an event or behavior in one context spreading into another area, often unintentionally.

Work Stress

The physical and emotional strain experienced as a result of job demands, often characterized by tension, anxiety, or fatigue.

Psychological Contract

The unwritten, perceived obligations, and expectations between an employer and employees regarding the nature of their working relationship.

Makes Contributions

refers to the act of offering ideas, efforts, or resources to a group, project, or cause, enhancing its success or progress.