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) Monthly fixed asset reconciliation and independent review of the subsidiary ledger with the general ledger
C) Periodically checking fixed assets against the fixed asset records
D) Have a code of conduct that employees must agree to and sign, as well as training for employees that includes firing and legal actions for engaging in fraud.