​Which of the Following May Indicate Management Fraud

question 7

Multiple Choice

​Which of the following may indicate management fraud?

• A)​The name of a relative of a member of upper management is suggested to fill a Board of Directors vacancy.
• B)​Increases and decreases in inventory fluctuates from period to period.
• C)​Inconsistencies exist between what management is telling the auditor and what the auditor observes.
• D)​Several mistakes are discovered in the inventory records.

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Definitions:

Teenagers

Individuals who are in the age group of 13 to 19 years, characteristically undergoing transitions from childhood to adulthood.

Older People

Individuals of an advanced age, often considered to be in the later stages of life, characterized by increased wisdom, experience, and, potentially, physical and cognitive changes.

Stimulant

A substance that raises levels of physiological or nervous activity in the body, often used to increase alertness or energy.

Nembutal

A barbiturate drug used primarily in the past for sedation, inducing sleep, or as a pre-anesthetic agent, known for its potential for dependence and overdose.