Red Flags That Auditors Can Use to Alert Them to the Possibility

question 42

Multiple Choice

Red flags that auditors can use to alert them to the possibility that a fraud may have occurred include:

• A) Strong internal controls.
• B) Routine transactions.
• C) A high turnover of key employees.
• D) Effective internal auditing staff.

---

Definitions:

Frederick Taylor

An American mechanical engineer who sought to improve industrial efficiency and is known as the father of scientific management.

Scientific Management

A management theory that analyzes and synthesizes workflows to improve economic efficiency, especially labor productivity.

Knights of Labor

A significant labor organization in the United States during the late 19th century that aimed to protect and improve workers' rights through collective action.

Labor Unions

Organizations formed by workers in various sectors to protect and advance their rights, wages, benefits, and working conditions through collective bargaining.