Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 176

Which of the following is the strongest red flag for bribery that is usually associated with the rationalization element of the fraud triangle?

Answer options

• A. Poor compensation of employees.
• B. Employees' unrestricted access to sales information.
• C. Too much trust in key employees.
• D. Employees living beyond their means.

Correct answer: D

Explanation

Option D is correct because employees living beyond their means may justify unethical behavior like bribery to maintain their lifestyle. The other options, while concerning, do not directly indicate a personal financial pressure that could lead to rationalization of such actions.