Which of the Following Is Not a Potential Fraud Indicator

question 54

Multiple Choice

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

• A)expenses that are significantly above or below industry norms.
• B)expense accounts that have significant debit entries.
• C)payments made to senior officers in the form of loans that are subsequently forgiven.
• D)capital assets that seem to be growing faster than the business.

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Definitions:

Consensus

General agreement among a group or community, often used as a standard of decision-making and acceptance within a group.

Distinctive

Having a unique quality, characteristic, or feature that distinguishes someone or something from others.

Attribution

The process of assigning a cause to our own behavior, and that of others.

Causal Attributions

The process by which individuals explain the causes of behavior and events, attributing them to internal dispositions or to external situations.