During an audit of a major contract, an internal auditor finds that actual hours and dollars billed are consistently at or near budgeted amounts. This condition is a red flag for which of the following procurement fraud schemes?
A) Defective pricing.
B) Cost mischarging.
C) Fictitious vendor.
D) Bid rotation.

Question

Quizplus · Accepted Answer

Cost mischarging occurs when actual hours and dollars billed are manipulated to match budgeted amounts, potentially indicating fraudulent billing practices.

During an Audit of a Major Contract, an Internal Auditor