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An auditor found that Rent-A-Wreck management does not always comply with its stated policy that sealed bids be used to sell obsolete cars. Records indicated

An auditor found that Rent-A-Wreck management does not always comply with its stated policy that sealed bids be used to sell obsolete cars. Records indicated that several vehicles with recent major repairs were sold at negotiated prices. Management vigorously assured the auditor that performing limited repairs and negotiating with knowledgeable buyers resulted in better sales prices than the sealed-bid procedures. Further investigation revealed that the vehicles were sold to employees at prices well below market value. Three managers and five other employees pleaded guilty to criminal charges and made restitution. The fraud symptoms that should have aroused the auditor's suspicion include all the following except for:

A. Failure to follow the established policy of requiring sealed bids to dispose of vehicles being salvaged.

B. Management's vigorous justification for departing from established policy.

C. Failure to enforce policies for system access privileges

D. Repairing vehicles before they were sold for salvage.

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