Which of the following situations is most likely to heighten an internal auditor’s professional skepticism regarding potential fraud?

Which of the following situations is most likely to heighten an internal auditor’s professional skepticism regarding potential fraud?
A . A procurement manager does not have the expected academic credentials for his position.
B . A salesperson frequently complains about the organization’s policy on sales commissions.
C . The accounts payable supervisor has requested advances against her monthly salary on several occasions.
D . A financial accountant is absent from work frequently due to regular medical procedures.

View Answer

Answer: C

Explanation:

Requesting advances against a monthly salary frequently, as in option C, could indicate financial stress or potentially dubious financial management behaviors. This situation could heighten an auditor’s professional skepticism regarding potential fraud due to possible motives or incentives to commit fraud.

Reference: Internal Auditing Standards and professional guidelines on fraud risk awareness and assessment.