Allison Everhart,an employee in accounts payable,believes she can run a fictitious invoice through the accounts payable system and collect the money.She knows payments are subject to an audit.Which account would be the best place to hide the fraud?
A) Inventory.
B) Wage expense.
C) Consulting service expense.
D) Property tax expense.

Question

Quizplus · Accepted Answer

Consulting service expenses are often more difficult to verify than other types of expenses because they involve intangible services that may not leave a physical trail or documentation. This makes it a prime target for fraudulent invoices to be hidden within legitimate expenses. Additionally, the amount charged for consulting services can vary widely, allowing an employee to manipulate the amount charged without raising suspicion.

Allison Everhart,an Employee in Accounts Payable,believes She Can Run a Fictitious