A Charitable Organization Provides Substantial Grants for Important Medical Research

question 60

Multiple Choice

A charitable organization provides substantial grants for important medical research. Assuming marginal controls are in place, which of the following possible frauds or misuses of organization assets should be considered the area of greatest risk?

• A) Senior executives are using company travel and entertainment funds for activities that might be considered questionable.
• B) Purchases of office supplies are made from fictitious vendors.
• C) Grants are made to organizations associated with senior executives.
• D) A payroll clerk has added a fictitious employee.

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Definitions:

Aggression

Behavior intended to harm or intimidate others, driven by various psychological, environmental, or biological factors.

Heat Waves

Prolonged periods of excessively hot weather, which can have significant health, ecological, and societal impacts.

Temperature

A measure of the warmth or coldness of an environment or object, expressed in degrees.

Causally Related

A connection between two events where one directly impacts or brings about the other.