Which of the Following May Indicate Management Fraud

question 21

Multiple Choice

Which of the following may indicate management fraud?

• A) The name of a relative of a member of upper management is suggested to fill a board of directors' vacancy.
• B) Increases and decreases in inventory fluctuate from period to period.
• C) Inconsistencies exist between what management is telling the auditor and what the auditor observes.
• D) Several mistakes are discovered in the inventory records.

---

Definitions:

Academic Intelligence

The ability to learn, understand, and apply knowledge in academic subjects.

Experiential Aspect

Refers to the component of a psychological or physical phenomenon that is directly lived through and experienced by an individual.

Sternberg's Triarchic Theory

A theory of intelligence proposing that human intelligence comprises three components: analytical, creative, and practical.

Prior Experiences

Previous events or occurrences in an individual's life that influence current behavior, learning, or attitudes.