Question

Describe three potential fraud symptoms.

Answer 1

Potential fraud symptoms:

1.Inaccuracies or unusual entries or balances in source documents, journal entries, ledgers, or financial statements.

2.Relationships, procedures, or events that are unusual or unexpected; these include events, transactions, or procedures that are too big or too small, that are done by the wrong person or at the wrong time, or that are unusual in some other way.

3.Unusual changes in behavior that are caused by stress (such as mood swings, sweating, rubbing the hands together, not looking straight in the eye) that accompany fraud perpetrators

4.The theft act, concealment, and conversion that are present in every fraud