Which of the following is an example of external fraud?
A) A vendor offers to purchase football tickets for a purchasing officer if awarded a contract.
B) A purchasing agent awards a contract to a vendor owned by a friend.
C) A vendor bills the company for services that were never performed.
D) The company overstates the financial performance in publicly-issued financial statements.

Question

Quizplus · Accepted Answer

External fraud involves a third party, such as a vendor, deceiving a company for financial gain. In this case, the vendor is billing for services not performed, which is an act of fraud against the company.

Which of the Following Is an Example of External Fraud