Fraud professionals and forensic accountants use the term red flag to indicate:
A) that they are looking for symptoms and badges of fraud.
B) that all personnel will be investigated.
C) that evidence of fraud or abuse have been located and identified.
D) that a person or group of people have been identified as possible fraudsters or abuser.

Question

Quizplus · Accepted Answer

A red flag is a warning sign or indication that there may be fraudulent activity occurring. Fraud professionals and forensic accountants use red flags to identify symptoms and badges of fraud that can be used to investigate and prevent fraudulent activity. Options B, C, and D are not accurate as they are specific to certain situations or assumptions about red flags.

Fraud Professionals and Forensic Accountants Use the Term Red Flag