Which of the following is a common example of vendor fraud?
A) Fraud perpetrated through collusion between buyers and vendors.
B) Fraud perpetrated by upper management.
C) The perpetrator physically removes the inventory from the business premises.
D) A fraud perpetrated through financial statement manipulation.

Question

Quizplus · Accepted Answer

Vendor fraud is often perpetrated through collusion between a buyer and a vendor, where the vendor overcharges for goods or services and the buyer gets a kickback or other benefit in return. This can result in inflated costs for the company, ultimately harming shareholders and employees. The other options listed are also examples of fraud but not specific to vendor fraud.

Which of the Following Is a Common Example of Vendor