Which of the following is NOT listed as a symptom of fraud?

• A. Timely payment of wages
• B. Strange transactions
• C. Lavish lifestyles of employees
• D. Payments being made out of proportion to work done

Answer: (A)

Fraud symptoms show up as red flags in how money moves and what people do with it. Strange transactions are a clear sign something unusual is happening, since normal daily activity tends to be straightforward and well documented. Lavish lifestyles of employees can indicate funds being diverted to personal use rather than to legitimate business costs. Payments being made out of proportion to the work done suggest overpayments, fictitious expenses, or ghost employees. Timely payment of wages, on the other hand, is expected under proper payroll controls and does not signal fraud. So it’s not listed as a fraud symptom, making it the correct choice for what is NOT a symptom.