Which of the Following Best Describes the Objective of a Fraud

question 2

Multiple Choice

Which of the following best describes the objective of a fraud examination?

• A) To make recommendations to management about how to prevent fraud
• B) To determine whether financial statements are free of misstatements due to fraud
• C) To express an opinion on the guilt or innocence of a suspect
• D) To determine whether a crime has been committed, and if so, who is responsible

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Definitions:

Secured Interest

An interest in personal property or fixtures that secures payment or performance to a creditor.

Personal Property

Tangible, movable objects.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States.

Perfection

The series of legal steps a secured party takes to protect its right in the collateral from the other creditors who want their debt returned through the same collateral.