Which of the Following Is Not a Potential Fraud Indicator

question 68

Multiple Choice

Which of the following is not a potential fraud indicator in the acquisition and payment cycle?

• A)Expenses that are significantly above or below industry norms.
• B)Expense accounts that have significant debit entries.
• C)Unexpected increases in gross margin.
• D)Capital assets that seem to be growing faster than the business.

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Definitions:

Competitive Exclusion

A principle stating that two species competing for the same resources cannot coexist at constant population values if other ecological factors remain constant.

Grain Beetles

A group of beetles known for infesting and feeding on stored grains and cereals.

Parasitic Relationship

A biological interaction where one organism, the parasite, lives on or in another organism, the host, causing it harm and benefiting from the nutrients of the host.

Climax-Pattern Model

A concept in ecology that describes the final stable community in a successional series, which remains relatively unchanged until disrupted by a major environmental change.