Which of the following is an indicator of fraud risk from a POA perspective?

• A. Unusual asset variances
• B. High vendor satisfaction
• C. Normal purchasing patterns
• D. Strong access controls

Answer: (A)

Fraud risk indicators in asset protection come from gaps between what the records show and what actually exists. Unusual variances in assets—where counts or values don’t match the ledger in unexpected ways—are the clearest warning sign. They suggest possible misappropriation, improper disposals, undocumented transactions, or errors that could conceal fraud. Because safeguarding assets depends on accurate counts, reconciliations, and independent verifications, such variances naturally prompt investigation, stronger counts, and tighter controls over who can access or adjust assets.

The other options don’t signal fraud risk on their own. High vendor satisfaction may reflect a healthy relationship and good service, not fraud. Normal purchasing patterns imply routine operations rather than unusual activity. Strong access controls reduce the chance of fraud but aren’t indicators that fraud is occurring; they reflect preventive measures rather than a risk signal.