When auditing the award of a major contract, which of the following should an internal auditor suspect as a red flag for a bidding fraud scheme? 1. Subsequent change orders increase requirements for low-bid items. 2. Material contract requirements are different on the actual contract than on the request for bids. 3. A high percentage of employees are charged to indirect accounts. 4. Losing bidders are hired as subcontractors.
A) 1 only
B) 2 only
C) 1 and 3.
D) 2 and 4.

Question

Quizplus · Accepted Answer

Material contract requirements differing from the request for bids and losing bidders being hired as subcontractors are both red flags for potential bidding fraud schemes.

When Auditing the Award of a Major Contract, Which of the Following