Which of the following is a symptom of potential inventory fraud?
A)an auditor observing a weakness in the inventory-receiving procedures
B)an auditor observing an override of an internal control
C)an auditor observing inadequate physical controls in the warehouse
D)an auditor observing the lack of authorization required for purchases of inventory under $1,000

Question

​Which of the following is a symptom of potential inventory fraud?
A)​an auditor observing a weakness in the inventory-receiving procedures
B)​an auditor observing an override of an internal control
C)​an auditor observing inadequate physical controls in the warehouse
D)​an auditor observing the lack of authorization required for purchases of inventory under $1,000

Quizplus · Accepted Answer

An override of an internal control can be a red flag for potential fraud, as it allows for manipulation of the inventory records without detection. A weakness in receiving procedures, inadequate physical controls, and lack of authorization for small purchases may indicate other control deficiencies, but do not necessarily suggest fraud.

​Which of the Following Is a Symptom of Potential Inventory

Which of the Following Is a Symptom of Potential Inventory