Which of the Following Conditions Identified During the Audit Increases

question 47

Multiple Choice

Which of the following conditions identified during the audit increases the risk of employee fraud?

• A)Large amounts of cash in the bank.
• B)Existence of a mandatory vacation policy for employees performing key functions.
• C)Inventory items of small size,but high value.
• D)Presence of reconciling items on a client prepared year-end proof of cash.