Which of the Following Would Be a Red Flag That

question 310

Multiple Choice

Which of the following would be a red flag that indicates the possibility of inventory fraud?

• A) The controller has assumed responsibility for approving all payments to certain vendors. II. The controller has continuously delayed installation of a new accounts payable system, despite a corporate directive to implement it. III. Sales commissions are not consistent with the organization's increased levels of sales. IV. Payments to certain vendors are supported by copies of receiving memos, rather than originals.
• B) I and II only
• C) II and III only
• D) I, II, and IV only
• E) I, III, and IV only

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Definitions:

Defence Mechanism

Psychological strategies deployed by individuals unconsciously to protect themselves from perceived threats or anxiety.

Stress

A physical or mental response to an external cause, such as significant demand or threat, that disturbs an individual's mental or physical equilibrium.

Defence Mechanisms

Psychological strategies used by individuals to cope with reality and protect their ego by unconsciously denying or distorting reality.

Short-term Stress Reduction

Temporary methods or techniques used to decrease stress and enhance well-being.