Of the Following Examples of Fraud,which Will Be the Most

question 38

Multiple Choice

Of the following examples of fraud,which will be the most difficult to prevent and detect? Assume the company enforces adequate segregation of duties.

• A) Jim issues credit cards to him and Marie, and when the credit card balances are just under $1,000, Marie writes off the accounts as bad debt. Jim then issues new cards.
• B) An employee puts inventory behind the dumpster while unloading a vendor's delivery truck, then picks up the inventory later in the day and puts it in her car.
• C) A mail room employee steals a check received from a customer and destroys the documentation.
• D) The accounts receivable clerk does not record sales invoices for friends or family, so they can receive free goods.

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Definitions:

Genetic Risk Factors

Heritable traits that increase an individual's likelihood of developing a disease or condition.

Serum Cholesterol

A measure of the total amount of cholesterol in the blood, including low-density lipoprotein (LDL) and high-density lipoprotein (HDL), important for assessing cardiovascular health.

Cigarette Smoking

The act of inhaling and exhaling the smoke of burning tobacco contained in cigarettes, which is a known health hazard.

Ethnic Minorities

Groups of people who differ in race or ethnicity from the majority population of a country or region.