During an Audit of a Major Contract, an Internal Auditor

question 275

Multiple Choice

During an audit of a major contract, an internal auditor finds that actual hours and dollars billed are consistently at or near budgeted amounts. This condition is a red flag for which of the following procurement fraud schemes?

• A) Defective pricing.
• B) Cost mischarging.
• C) Fictitious vendor.
• D) Bid rotation.

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Definitions:

Segregation

The enforced separation of different racial groups in a country, community, or establishment, often denying one group access to rights and privileges.

Economic Security

Pertains to the state of possessing consistent earnings or alternative means to sustain a lifestyle at present and in the upcoming times.

National Resources Planning Board

The National Resources Planning Board was a United States government agency active during the 1930s and early 1940s that was responsible for evaluating and recommending national policy on land use, public works, and environmental conservation.

Full Employment

Describes a scenario in the economy where nearly all who are willing and able to work are employed, with unemployment being very low.