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.

Question

Quizplus · Accepted Answer

A high turnover of key employees can be a red flag that fraud may have occurred or is more likely to occur in the future. This is because employees who have committed fraud may leave the company to avoid detection or prosecution. Additionally, new employees without proper training and background checks may be more susceptible to committing fraud. Strong internal controls, routine transactions, and effective internal auditing staff are all measures that can help prevent fraud but are not necessarily indicators that fraud has occurred.

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