Red flags that auditors can use to alert them to the possibility that a fraud may have occurred include:
A) Strong internal controls.
B) Routine transactions.
C) A high turnover of key employees.
D) Effective internal auditing staff.

Question

Quizplus · Accepted Answer

A high turnover of key employees may suggest the possibility of fraud since the perpetrator may be leaving quickly to cover up their actions or may be creating chaos in the organization to hide fraudulent activities. Strong internal controls and effective internal auditing staff can help detect and prevent fraud, and routine transactions may not necessarily indicate fraudulent activity.

Red Flags That Auditors Can Use to Alert Them to the Possibility