Question

Which of the following is a possible indication that fraud may be present?

A. An employee's spouse is diagnosed with Alzheimer's disease
B. An employee's lifestyle changes suddenly
C. An employee's spouse has a serious vehicle accident
D. An employee reports that another employee is a gambling addict

Answer 1

A sudden change in an employee's lifestyle can be a red flag for potential fraud, as it might indicate access to illegitimate funds.

Step-by-step explanation:

Among the options provided, the indication that fraud may be present is B. An employee's lifestyle changes suddenly. Sudden lifestyle changes can be a red flag indicating that an individual might be engaging in fraudulent activities, especially when these changes cannot be explained by known factors, such as a spouse's earnings or inheritance. This could suggest that the individual has access to funds that have not been obtained legitimately. In contrast, the situations described in the other options are more indicative of personal life hardships that do not necessarily suggest fraud.