Implementing preventive and detective controls to identify fake customer names similar to legitimate customer names could help mitigate what type of financial statement fraud?
A) Unauthorized shipments
B) Channel stuffing
C) Sham sales
D) Sales cutoff

Question

Quizplus · Accepted Answer

Sham sales involve fictitious transactions or sales made to non-existent customers or to real customers without their knowledge. Implementing controls to identify fake customer names helps in preventing such fraudulent sales from being recorded, thus mitigating sham sales fraud.

Implementing Preventive and Detective Controls to Identify Fake Customer Names