A Company May Need to Undertake an Internal Investigation into Alleged

question 22

Multiple Choice

A company may need to undertake an internal investigation into alleged employee fraud for which of the following reasons?

• A) To mitigate the company's vicarious liability for the wrongful conduct
• B) To determine the source and amount of loss
• C) To guard against wrongful termination accusations
• D) All of the above

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Definitions:

Consolidated Income Statement

A financial statement that shows the aggregate operating results of a parent company and its subsidiaries as if the group were a single entity.

FVE Method

FVE Method, or Fair Value Estimation Method, involves estimating the fair value of an asset or liability, taking into account market conditions and other influencing factors.

Equity Method

An accounting technique used when a company invests in another company and has significant influence, typically reflected by owning 20% to 50% of the voting stock, whereby the investment is initially recorded at cost and subsequently adjusted for the investing company's share of the investee's net profits or losses.

Investment in Humble

A financial stake in the company Humble, potentially involving the purchase of shares or other assets to gain a financial return.