Question

Which of the following is a common fraud symptom relating to ledgers?

1) a ledger that does not balance
2) a ledger that balances too perfectly
3) master account balances that do not equal the sum of the individual customer or vendor balances
4) both a and c

Answer 1

A common fraud symptom related to ledgers is both a ledger that does not balance and master account balances that do not match the sums of individual customer or vendor balances, indicating possible unauthorized transactions or alterations.

Step-by-step explanation:

One common fraud symptom relating to ledgers is option 4: both a ledger that does not balance and master account balances that do not equal the sum of the individual customer or vendor balances. A ledger that does not balance may indicate unauthorized transactions or errors in recording, which could be a sign of fraudulent activity. Additionally, if master account balances do not match the total of individual customer or vendor balances, this discrepancy can suggest that some transactions may have been altered or fabricated. It’s worth noting that while a ledger that balances too perfectly could raise suspicion in terms of being too good to be true, it might not be considered a common fraud symptom in comparison to the other options given.