Question

Analytical Fraud symptoms include (cont.):

Significant _______ or ________ in account balances, ratios, or relationships
a) Fluctuations, variations
b) Consistency, stability
c) Uniformity, reliability
d) Predictability, conformity
Physical _______
a) Security
b) Inventory
c) Audits
d) Surveillance
Cash _______ or _______
a) Discrepancies, shortages
b) Transactions, withdrawals
c) Flows, outflows
d) Revenues, expenses
_______ late charges
a) Avoidance of
b) Frequent
c) Timely
d) Infrequent
________ expenses or reimbursements
a) Authorized
b) Transparent
c) Unapproved
d) Regular
Excessive ________ of executives
a) Compensation
b) Scrutiny
c) Accountability
d) Responsibility

Answer 1

Analytical fraud symptoms include fluctuations in account balances, physical security measures, cash discrepancies, avoidance of late charges, and excessive executive compensation.

Step-by-step explanation:

Analytical fraud symptoms include significant fluctuations or variations in account balances, ratios, or relationships. These fluctuations can be a red flag for fraudulent activities as they indicate inconsistencies or irregularities in financial records. For example, if there are sudden and unexplained changes in the balances of accounts or unexpected fluctuations in financial ratios, it could be a sign of fraudulent behavior.

Physical security is also an important aspect to consider when detecting analytical fraud. By implementing measures such as security systems, inventory management, audits, and surveillance, companies can protect their assets and minimize the risk of fraud.

Cash discrepancies or shortages are another symptom of analytical fraud. This can involve improper recording of transactions, unauthorized withdrawals, or misappropriation of funds. Regular monitoring and reconciling of cash flows can help identify any discrepancies.

Avoidance of late charges can also be indicative of analytical fraud. Deliberately avoiding paying late charges may be a way to conceal fraudulent activities or manipulate financial records.

Lastly, excessive compensation of executives can be a symptom of analytical fraud. If executives are being excessively compensated, it could be a sign of misappropriation of company funds or other fraudulent activities.