Which of the following is a typical symptom of a revenue-related fraud?
a. Significant new, unknown customers.
b. Fall in gross profit percentage compared to the previous year.
c. Purchases from suppliers not approved on vendor lists.
d. The company having a huge customer base.
a
FEEDBACK: a. Correct.
b. Incorrect.
c. Incorrect. This is an inventory-related fraud symptom.
d. Incorrect. While new, unusual, or large customers that have not gone through the customer approval process is also a symptom of fraud, but just having a huge customer base is not necessarily a symptom of fraud.
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