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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