Which of the following scenarios provides the most concerning red flag, or indicator of possible fraud?
Which of the following scenarios provides the most concerning red flag, or indicator of possible fraud?
The most concerning red flag for possible fraud is the organization not performing any due diligence research on third-party service providers. This lack of due diligence significantly increases the risk of engaging with fraudulent or untrustworthy entities, which can lead to various forms of fraud, including billing schemes, kickbacks, or collusion between the service provider and internal employees.
ack of Due Diligence: Failure to conduct due diligence on third-party service providers can increase the risk of engaging with fraudulent or untrustworthy entities. This lack of scrutiny can lead to various forms of fraud, such as billing schemes, kickbacks, or collusion between the service provider and internal employees.