Which of the following indicates an observed symptom (red flag) of fraud?
A) An employee is unhappy with her pay.
B) An employee is undergoing a messy divorce.
C) An employee has bought a luxury car and some expensive jewelry.
D) An employee was seen shredding documents after hours.

Question

Quizplus · Accepted Answer

D  An employee suddenly acquiring luxury items may indicate living beyond their means, a common red flag for fraud. Shredding documents after hours can suggest an attempt to destroy evidence of fraudulent activities.

Which of the Following Indicates an Observed Symptom (Red Flag)