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

Quizplus · Accepted Answer

An override of an internal control could indicate that someone is manipulating inventory records to commit fraud. The other options may indicate weaknesses in inventory controls or procedures, but do not directly suggest fraud.

Which of the Following Is a Symptom of Potential Inventory