Which Statement Is False Concerning the Different Observation Methods

question 64

Multiple Choice

Which statement is false concerning the different observation methods?

• A)Mechanical observation can vary widely from low to high structure depending upon on the methods used.
• B)The degree of disguise is low in the case of audits,as it is difficult to conceal the identity of auditors.
• C)Observation bias is high in the case of mechanical observation because a human observer is involved.
• D)The ability to observe in a natural setting is low in trace analysis because the observation takes place after the behavior has occurred.

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Definitions:

Transaction

An exchange or transfer of goods, services, or funds between parties.

Unsecured Creditor

A creditor who has extended credit without obtaining any collateral, making them more vulnerable in the event of debtor default.

Secured Creditor

A creditor that may look to particular assets of the debtor to ensure payment of the debt.

Chattel Mortgage

A chattel mortgage is a loan agreement where personal movable property is used as collateral for the loan, and the borrower retains possession while the lender has a security interest.