Internal Controls Can Be Effective in Preventing or Detecting All

question 74

Multiple Choice

Internal controls can be effective in preventing or detecting all of the following types of fraud except:

• A)Customer Fraud
• B)Management Fraud
• C)Vendor Fraud
• D)Employee Fraud

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Definitions:

Financial Asset

An intangible asset representing a claim on future benefits or returns, examples include stocks, bonds, and bank deposits.

Real Asset

Physical or tangible assets that have value due to their substance and properties.

Pass-Through Mortgage Security

A type of asset-backed security that is secured by a pool of mortgage loans, where payments from borrowers pass through to investors.

Issuing Agency

The government or corporate entity that issues securities for the purpose of raising capital.