Which of the following is NOT an example of fraud in the acquisition and payment cycle?
A) Theft of inventory by employees.
B) Inventory shrinkage.
C) Large manual adjustments to inventory accounts.
D) Excess inventory because of a production slowdown.

Question

Quizplus · Accepted Answer

Excess inventory because of a production slowdown is not an example of fraud in the acquisition and payment cycle. Theft of inventory by employees, inventory shrinkage, and large manual adjustments to inventory accounts are all potential fraud risks in this cycle.

Which of the Following Is NOT an Example of Fraud