Which of the following is least indicative of fraudulent activity?
A) Numerous cash refunds have been made to different people at the same post office box address.
B) Internal auditors cannot locate several credit memos to support reductions of customers' balances.
C) Bank reconciliation has no outstanding checks or deposits older than 15 days.
D) Three people were absent the day the auditors handed out the paychecks and have not picked them up four weeks later.

Question

Quizplus · Accepted Answer

Option C indicates that the bank reconciliation has no outstanding checks or deposits older than 15 days, which is a good indication of proper accounting procedures being followed. The other options suggest potential fraudulent activity, such as cash refunds being sent to a single post office box or missing credit memos that could indicate manipulation of customer balances or other financial records. The third option may be an issue related to payroll processing, but it is not necessarily indicative of fraudulent activity.

Which of the Following Is Least Indicative of Fraudulent Activity