Which of the Following, If Observed, Would Not Indicate the Need

Multiple Choice

Which of the following, if observed, would not indicate the need to extend the search for other indicators of fraud in a purchasing department?

A) The standard of living of one of the purchasing agents has increased.
B) The internal control structure has significant weaknesses.
C) The purchasing agents have convinced management to adopt a policy of paying vendors on a more timely basis in order to avoid incurring penalty charges.
D) The cost of goods procured seems to be excessive in comparison with previous years.