Which of the Following Statements Is Incorrect

question 46

Multiple Choice

Which of the following statements is incorrect?

• A)A fraud prevention program starts with a fraud risk assessment across the entire firm
• B)The audit committee typically has an oversight role in risk assessment process
• C)Communicating a firm's policy file to employees is one of the most important responsibilities of management
• D)A fraud prevention program should include an evaluation on the efficiency of business processes.

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Definitions:

Normative Statements

Assertions about how the world ought to be, reflecting opinions or values rather than objective observations.

Rational Choice

The theory that individuals always make prudent and logical decisions that provide them with the greatest benefit or satisfaction and are in their highest self-interest.

Normative Statements

Assertions about how the world ought to be, involving opinions and subjective judgements.

Rational Choice

A theory assuming individuals use logical calculations to make prudent decisions that provide them with the greatest benefit or satisfaction.