A charitable organization provides substantial grants for important medical research. Assuming marginal controls are in place, which of the following possible frauds or misuses of organization assets should be considered the area of greatest risk?
A) Senior executives are using company travel and entertainment funds for activities that might be considered questionable.
B) Purchases of office supplies are made from fictitious vendors.
C) Grants are made to organizations associated with senior executives.
D) A payroll clerk has added a fictitious employee.

Question

Quizplus · Accepted Answer

Grants made to organizations associated with senior executives pose the greatest risk because they can involve large sums of money and potential conflicts of interest, leading to significant misuse of funds.

A Charitable Organization Provides Substantial Grants for Important Medical Research