104. If they had been observed before her resignation, which characteristics of the employee would have been considered red flags? (Select Two.)
Answer: A,D
The employee had a lavish lifestyle for her income and was constantly evasive about the reasons for leaving her previous corporate finance job.
Both characteristics would raise concerns regarding the employee's integrity and financial management, indicating potential issues that could lead to unethical behavior or misconduct.
A) The employee had a lavish lifestyle for her income.
This characteristic suggests that the employee's spending habits are inconsistent with her reported income, which can be a significant red flag. It raises questions about the source of her wealth, potentially indicating involvement in illicit activities or financial misconduct.
B) The employee was originally from a high-risk jurisdiction.
While being from a high-risk jurisdiction may indicate a higher likelihood of exposure to unethical practices, it does not directly reveal any problematic behavior of the individual. Hence, it is less indicative of immediate red flags compared to other options.
C) The employee had friends in high-risk industries.
Having friends in high-risk industries may suggest potential exposure to unethical practices; however, it does not inherently indicate that the employee herself is engaged in any misconduct. Therefore, this characteristic does not serve as a strong red flag.
D) The employee was constantly evasive about the reasons for leaving her previous corporate finance job.
Evasiveness regarding her job change raises significant concerns about transparency and honesty. It may indicate underlying issues such as poor performance or unethical behavior in her previous role, thus serving as a clear warning sign.
Conclusion
The characteristics of a lavish lifestyle inconsistent with income and evasiveness about previous employment are clear indicators of potential problems. These traits suggest financial irregularities and a lack of transparency, both of which are critical red flags in assessing the employee's trustworthiness and ethical standing. Other options, while noteworthy, do not present as direct concerns when evaluating the employee's suitability.