Of the following examples of fraud, which will be the most difficult to prevent and detect? Assume the company enforces adequate segregation of duties.

a
The accounts receivable clerk does not record sales invoices for friends or family, so they can receive free goods.
b
An employee puts inventory behind the dumpster while unloading a vendor's delivery truck, then picks up the inventory later in the day and puts it in her car.
c
A mail room employee steals a check received from a customer and destroys the documentation. d
d A credit manager issues credit cards to himself and a staff accountant in the accounting office, and when the credit card balances are just under $1,000, the staff accountant writes off the accounts as bad debt. The credit manager then issues new cards.

D. A credit manager issues credit cards to himself and a staff accountant in the accounting office, and when the credit card balances are just under $1,000, the staff accountant writes off the accounts as bad debt. The credit manager then issues new cards.

D

Explanation:

Fraud is an intentional act perpetrated to gain an undue advantage. One of the measures in preventing fraud is segregation of duty which is a system of breaking down an operation into different stages so as to subject the activities of various personnel to review by other as it goes through the process .

However there are still some fraudulent act that can not be easily uncovered or prevented , especially when there is collision between two parties just as in the case between the credit manager and the staff accountant in the scenario