In the Absence of Any Pre-Established Protocols Within a Company

question 16

Multiple Choice

In the absence of any pre-established protocols within a company, a fraud examiner must:

• A) Find case precedence from a previous fraud of similar scope and use their protocols.
• B) Work with law enforcement to establish protocols.
• C) Develop a set of protocols prior to the specific investigation they are working on.
• D) All of the above

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Definitions:

Ending Inventory

The total value of all inventory, including products that are partially or fully completed, that is still on hand at the end of an accounting period.

Net Realizable Value

The estimated selling price of an asset in the ordinary course of business, minus any costs associated with its sale or disposal.

Damaged Merchandise

Items that have suffered physical harm impairing their value, functionality, or saleability, which often result in inventory write-offs or markdowns.

Cost

The amount of money or resources expended to acquire an asset, produce a product, or operate a business activity.