Question

Q3 (c): - (CLO No. 3) Cyber fraud refers to any type of deliberate deception for unfai Most of the times, accounting information system is used to perpetrate mica ype of deliberate deception for unfair or unlawful gain that occurs online. challenge is that these frauds are on a rise and organizations should be diligento tem is used to perpetrate these frauds. Todays' bigger nizations should be diligent to counter this threat. Required: - Write down any five symptoms which may cause a red flag recognizing prospective employees engaged in a fraudulent activity. (2 % marks)

Answer 1

Employee Red Flags of fraud
1.Employee lifestyle changes: expensive cars, jewelry, homes, clothes
2. Significant personal debt and credit problems
3. Behavioural changes: these may be an indication of drugs, alcohol, gambling, or just fear of losing
the job
4. High employee turnover, especially in those areas which are more vulnerable to fraud
5. Refusal to take vacation or sick leave
6. Lack of segregation of duties in the vulnerable area