Which of the Following Statements Best Describes the Primary Difference

question 73

Multiple Choice

Which of the following statements best describes the primary difference between an audit and forensic accounting?

• A) An audit has the focused responsibility to detect fraud in the client organization, while forensic accounting sets out to prevent fraud.
• B) An audit has no responsibility for detecting fraud, while forensic accounting provides an audit specific to material fraud discovery.
• C) An audit must follow Generally Accepted Auditing Standards, while the forensic accountant is bound to Generally Accepted Fraud Standards.
• D) An audit utilizes sampling techniques to detect material misstatements, while forensic accounting examines the entire population of fraudulent transactions.

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Definitions:

MP Schedule

A management plan or timetable for the production or operations within a company, often detailing when tasks should be completed.

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input, holding all other inputs constant.

Capital For Labor

The process of investing in capital goods to increase productivity, often leading to the replacement of labor with technology.

Price Of Labor

The compensation that workers receive in exchange for their labor, often reflected in wages or salaries.