When Using Ratios to Discover Financial Statement Fraud, What Is

question 30

Multiple Choice

When using ratios to discover financial statement fraud, what is typically the most important aspect to evaluate?

• A) The size of the ratio
• B) The direction of the ratio
• C) The change in the ratio
• D) The complexity of the ratio

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Definitions:

External Locus of Control

The belief that one's outcomes in life are controlled by external factors beyond their personal control.

Human Agency

The capacity of individuals to act independently and make choices, influencing their environment and their own lives.

Reciprocal Determinism

The theory that a person's behavior is both influenced by and influences their personal factors and the environment.

Reciprocal Determinism

Albert Bandura’s theory stating that a person’s behavior both influences and is influenced by personal factors and the social environment.