Bid Rigging and Kickbacks Create Unfair and Uncompetitive Bidding Processes

Multiple Choice

Bid rigging and kickbacks create unfair and uncompetitive bidding processes which may result in financial losses due to paying higher prices in the absence of competition. Choose the best control activity to address this risk.

A) Tagging all fixed assets
B) Expand the list of bidders to make it more difficult for bidders to collude.
C) Regular management review of fixed asset accounting transactions and trends in fixed asset ratios
D) Periodically checking fixed assets against the fixed asset records