Final answer:
A controller who refuses to take vacations and declines a promotion to a higher finance role could be a sign of increased risk of fraud, as it indicates a desire to maintain control and avoid detection of unauthorized activities.
Step-by-step explanation:
An indicator of increased risk of fraud within a company is when a controller refuses to take vacations and also declines a promotion to vice president of finance. This behavior can be a red flag for a number of reasons. First, by refusing to take vacations, the controller may be attempting to prevent others from stepping into their role and uncovering potential fraudulent activities that could go unnoticed in their absence. Additionally, declining a promotion might suggest that the individual is trying to maintain control over their current position where they have the opportunity to manipulate financial records without the higher level of scrutiny that comes with a vice president role.
These actions could be indicative of the individual's intent to conceal unauthorized activities, leading to an environment where fraudulent behavior may thrive. It is important for organizations to enforce policies such as mandatory vacation and rotation of duties to mitigate these risks and enhance the internal controls designed to prevent fraud.