While conducting a routine internal audit, Sally Franks overheard one of the company's purchasing agents bragging about receiving a substantial discount on a new SUV from the company's supplier of fleet cars. Is there sufficient predication to initiate a fraud examination?
A) Yes
B) No

Question

Quizplus · Accepted Answer

The purchasing agent's bragging about receiving a substantial discount on a new SUV from the company's supplier of fleet cars could indicate the possibility of fraudulent activity, such as receiving kickbacks or other illegal benefits. Therefore, there is sufficient predication to initiate a fraud examination.

While Conducting a Routine Internal Audit, Sally Franks Overheard One