An insurance company received claim forms from 22 phony doctors. The forms all originated from two addresses: a post office box and a business located in a nearby city and owned by the manager's husband. The manager used a limousine to pick up fellow employees from an expensive restaurant. What fraud symptoms are mentioned in this scenario

Option D

Explanation:

Complete question

An insurance company received claim forms from 22 phony doctors. The forms all originated from two addresses: a post office box and a business located in a nearby city and owned by the manager's husband. The manager used a limousine to pick up fellow employees from an expensive restaurant. What fraud symptoms are mentioned in this scenario? A) Accounting anomalies B) Extravagant lifestyles C) Internal control weaknesses D) Both a and b E) All of the above

Solution

The Accounting anomalies are include the following

a) source documents

b) faulty journal entries

c) inaccuracies in ledgers

Extravagant lifestyles fraud occur when a person's expense is not in compliance of their known income.

Hence, both option A and B are correct.

Option D

yes the correct answer was

b.the increased supply will create a surplus.