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.

---

Definitions:

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, leading to damages or injury.

Statistical Tabulating

A process used in data analysis that involves organizing and summarizing data into useful tables which help in understanding the underlying patterns.

Surveyors

Professionals who assess and measure land, property, and construction projects to determine boundaries, dimensions, and the topographical makeup of an area.

Negligent Misstatement

A false statement made carelessly, causing someone to suffer loss or damage because they relied on it.