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

question 97

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) A mail room employee steals a check received from a customer and destroys the documentation.
• B) The accounts receivable clerk does not record sales invoices for friends or family, so they can receive free goods.
• C) 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.
• D) Mike issues credit cards to him and Maxine, and when the credit card balances are just under $1,000, Maxine writes off the accounts as bad debt. Mike then issues new cards.

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Definitions:

Second Installment

The subsequent payment made after the first one in a series of payments divided over time.

Project Phase

A distinct stage in the life cycle of a project, characterized by specific tasks and objectives that move the project toward completion.

Fund-Raising Campaign

An organized effort to collect money for a specific cause or project from a wide range of donors.

Catastrophic Flood

A large-scale, sudden inundation of water that causes serious damage to land, property, and life, often due to extreme weather events or failures in water control structures.