Which of the following is a common example of vendor fraud?
A)Fraud perpetrated through collusion between buyers and vendors.
B)Fraud perpetrated by buyers acting alone.
C)The perpetrator physically removes the inventory from the business premises.
D)A fraud perpetrated through an unintentional mistake.

Question

Quizplus · Accepted Answer

Vendor fraud is usually carried out through collusion between a company's employees responsible for procuring goods/services and the vendors/suppliers. This can involve kickbacks, overbilling, or fictitious orders. Therefore, option A is the correct choice as it involves fraud being perpetrated through collusion between the buyer and vendor.

Which of the Following Is a Common Example of Vendor