Which of the Following Would Most Likely Be Considered a Red

question 436

Multiple Choice

Which of the following would most likely be considered a red flag for fraud?

• A) An organization lacks a whistleblower hotline for reporting suspicious activity.
• B) A senior manager has been delegating the authority to sign-off on small dollar amount purchases to a subordinate.
• C) An employee in charge of payroll disbursements has rotated these duties with several colleagues.
• D) An employee with significant personal debt is in charge of handling large wire transfers for the organization.

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Definitions:

Contract Law

The body of law that regulates the formation, performance, and enforcement of contracts between parties.

Sales Differ

Refers to the variation or discrepancy in sales outcomes, often used to analyze or report on different performance metrics.

Parol Evidence Rule

A legal principle that prevents parties to a written contract from presenting extrinsic evidence of terms of the contract that contradict, modify, or vary contractual terms agreed to in writing.

Common Law

A body of unwritten laws based on legal precedents established by the courts, as opposed to statutory laws written by legislative bodies.