FAFD1

A _________ is termed as an indication of a danger or a warning signal

• Red flag
• Green flag
• Amber flag
• White flag

A ________ is a flag which denotes a “too good to be true scenario”.

• Red flag
• Green flag
• Amber flag
• White flag

Significant increase in working capital borrowing as a percentage of turnover is a

• Red flag
• Green flag
• Amber flag
• White flag

A case where an employee doesn't take travel advance but always pays from his pocket is a

• Red flag
• Green flag
• Amber flag
• White flag

Payment to vendors who are not on approval list is a

• Management red flag
• Red flag in purchase
• Red flag in payroll
• Red flag in AR

When the auditor tests the documents by keeping them side by side then it is known as

• Test of impossibility
• Test of absurdity
• Juxtaposition test
• None of the above

The basic principles used in identifying red flags are

• Distrust the obvious
• 3 D vision
• Inverse logic
• All of the above

The principle of 3D vision includes

• Time dimension analysis
• Space dimension analysis
• Both a & b
• None of the above

The following category of individuals commit highest frauds (in monetary terms)

• Low level management
• Mid level management
• Senior level management
• All of the above

Disaster situation, incomplete information, disorderliness are:

• Red flags at macro level
• Red flags at micro level
• Green flags at macro level
• Green flags at micro level