Which of the Following Organizational Characteristics Is an Indicator of a Possible

question 34

Multiple Choice

Which of the following organizational characteristics is an indicator of a possible fraud?

• A) A board of directors comprised mainly of outsiders
• B) An independent internal audit department
• C) An audit committee comprised mainly of insiders
• D) An overstaffed accounting department

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Definitions:

Flexible Exchange Rates

Foreign exchange system where the value of currencies is determined by supply and demand in the forex market, without direct government intervention.

Services Trade

The exchange of services between countries, including sectors such as finance, insurance, transport, and tourism.

Goods Trade

The act of buying, selling, or exchanging tangible products between countries or within a country.

Balance of Payments Deficit

A situation where a country's total international payments exceed its total international receipts over a specified period, indicating more money flowing out than coming in.