Question

Analytical Fraud symptoms include:

Unexplained inventory _______ or ________
a) Increases, decreases
b) Discrepancies, surpluses
c) Shortages, overages
d) Inflows, outflows
Deviations from ________
a) Policies
b) Standards
c) Procedures
d) Norms
Increased ______
a) Costs
b) Efficiency
c) Revenues
d) Productivity
________ purchases
a) Unnecessary
b) Bulk
c) Regular
d) Authorized
______ ______ debit or credit memos
a) Frequent, unauthorized
b) Occasional, approved
c) Rare, legitimate
d) Consistent, recorded

Answer 1

Indicators of fraud can include inventory discrepancies, deviations from policies, unnecessary purchases, and unauthorized account changes.

Step-by-step explanation:

When analysing fraud symptoms, several potential indicators can be considered:

• Unexplained inventory shortages or overages can be indicative of fraudulent activities, such as theft or misreporting of inventory levels.
• Deviation from established policies can suggest that internal controls are being bypassed or ignored, which may facilitate fraud.
• An increased frequency of unnecessary purchases might indicate fraudulent procurement practices or personal use of company funds.
• Frequent, unauthorized debit or credit memos could signify manipulation of accounting records to cover up fraudulent transactions.

Analytical fraud symptoms include unexplained inventory shortages or overages, deviations from policies, and frequent unauthorized debit or credit memos.