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Exam IIA-CIA-Part2 All Questions

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Exam IIA-CIA-Part2 topic 3 question 4 discussion

Actual exam question from IIA's IIA-CIA-Part2
Question #: 4
Topic #: 3
[All IIA-CIA-Part2 Questions]

During an audit of a major contract, an auditor finds that actual hours and dollars billed are consistently at or near budgeted amounts. This condition is a red flag for which of the following procurement fraud schemes?

  • A. Defective pricing.
  • B. Cost mischarging.
  • C. Fictitious vendor.
  • D. Bid rotation.
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Suggested Answer: B 🗳️

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John1237
12 months ago
Cost mischarging (intentional).
upvoted 1 times
John1237
12 months ago
"Mischarging occurs when a contractor inflates its bills to the Government by charging for labor, parts or other costs that are greater than those the contractor actually incurred, or mischaracterizing its costs, or charging for things that are unallowable under the terms of the contract". It's a fraud scheme.
upvoted 1 times
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