CS Professional · Internal and Forensic Audit · Fraud Detecting Techniques
Which situation at Ganga Retail Ltd is best classified as an accounting-record red flag rather than a behavioural red flag?
Unexplained journal entries posted by senior staff just before quarter-end are an accounting-record red flag because the anomaly lies in the books themselves. The other choices describe individual behaviour or lifestyle, which are behavioural red flags.
- ANumerous unexplained journal entries posted by senior finance staff just before quarter-endCorrect
- BA cashier who lives well beyond his known salary
- CA manager who becomes defensive when asked routine questions
- DAn accountant who refuses promotion to avoid job rotation
Explanation
Unexplained, unsupported manual journal entries near period-end are anomalies in the records themselves. The other options describe personal conduct or lifestyle of individuals, which are behavioural indicators.
Did you get it right without looking?
One question tells you little. A timed set on Fraud Detecting Techniques shows your real accuracy, how long you take and where you lose marks.
More Fraud Detecting Techniques questions
- An internal auditor at Ganga Retail Ltd receives an anonymous complaint through the whistle-blower hotline alleging inflated purchase invoic…
- An internal auditor at Sundaram Pharma Ltd finds that a vendor's invoices are always just below Rs 50,000, the approval limit of the plant m…
- At Narmada Foods Ltd, a forensic auditor matches the employee master file with the vendor master file and finds a vendor whose bank account …
- During a forensic review, an auditor at Sundaram Textiles Ltd notices that several vendor payments are just below the Rs 50,000 approval lim…
- Forensic auditor Rohan receives a general ledger extract from Bharat Steels Ltd to run journal-entry tests. Before analysing, he reconciles …
- An auditor at Sundaram Pharma runs a Benford's Law test on 12,000 expense claims and finds an unusually high frequency of claims beginning w…