Possible Red Flags of Occupational Fraud and Abuse
Question
In Fraud scale pressure, opportunity and integrity variables all results in a list of ___ possible red flags or indicators of occupational fraud and abuse.
Answers
Explanations
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A. B. C. D.B
The Fraud Triangle is a framework that describes the three key elements that must be present for fraud to occur: pressure, opportunity, and rationalization. In the context of occupational fraud and abuse, these three elements combine to create a situation in which an employee or trusted individual is able and motivated to commit fraud against their employer or organization.
When all three elements of the Fraud Triangle are present, there is a list of 83 possible red flags or indicators of occupational fraud and abuse, which were identified by the Association of Certified Fraud Examiners (ACFE) based on their extensive research and experience in fraud investigation. These red flags or indicators can be used by fraud examiners and other professionals to identify potential fraud risks within an organization and develop strategies to mitigate those risks.
It's important to note that not all red flags or indicators of fraud necessarily indicate that fraud is occurring or has occurred. Rather, they are warning signs that suggest further investigation or scrutiny may be necessary. Additionally, not all fraud schemes will exhibit all of the red flags or indicators identified by the ACFE, and some schemes may exhibit additional red flags or indicators not on the list.
Therefore, the correct answer to this question is C. 83.
