Which of the following is a red flag indicating that an employee may be receiving kickbacks?
A) The purchase of inferior-quality inventory or merchandise
B) An unusually high volume of purchases from a particular vendor
C) The payment of purchase amounts that are frequently above market rates
D) All of the above

Question

Quizplus · Accepted Answer

Each of the options listed could be a red flag indicating that an employee is receiving kickbacks. The purchase of inferior-quality inventory or merchandise may suggest that the employee is choosing a vendor based on personal gain rather than quality. An unusually high volume of purchases from a particular vendor may indicate a personal relationship or incentive to use that vendor. And the payment of above-market rates may suggest that the employee is overpaying in order to receive a kickback in return. Therefore, all of these options are red flags to watch for.

Which of the Following Is a Red Flag Indicating That