If an auditor notices fraud symptoms related to inventory, one of the best ways to confirm if a fraud is occurring is to:
A) ask senior management.
B) search out tips and complaints from employees who may be aware that something isn't right.
C) report suspicions to regulatory agencies for further investigation.
D) continue searching for additional symptoms of the potential fraud.

Question

Quizplus · Accepted Answer

Searching out tips and complaints from employees who may be aware that something isn't right is one of the best ways to confirm if a fraud is occurring related to inventory, as they may have firsthand knowledge or observations of fraudulent activity. Asking senior management may not be reliable, as they may be involved in the fraud or may not be aware of it. Reporting suspicions to regulatory agencies should only be done after a thorough investigation and confirmation of the fraud. Continuing to search for additional symptoms is important, but may not confirm the fraud on its own.

If an Auditor Notices Fraud Symptoms Related to Inventory, One