Which of the following is a red flag of fraud?
A)High turnover of key employees
B)High inventory turnover rate
C)High current ratios
D)High quick ratios

Question

Quizplus · Accepted Answer

High turnover of key employees can indicate that something is wrong within the company, including potential fraud. When employees leave en masse, it may be an effort to distance themselves from the fraudulent activity or because they have discovered it and do not want to be a part of it. High inventory turnover rate, high current ratios, and high quick ratios by themselves are not necessarily red flags of fraud.

Which of the Following Is a Red Flag of Fraud