What Is the Primary Advantage of the Data-Driven Approach

question 23

Multiple Choice

What is the primary advantage of the data-driven approach?

• A) The investigator makes hypotheses and tests to see if each one holds true.
• B) It is less expensive and time intensive than the traditional approach.
• C) The investigator takes charge of the fraud investigation process.
• D) Data-driven fraud detection is proactive in nature.

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Definitions:

Required Return

The minimum profit or yield that investors expect to earn on an investment.

Unit Product Cost

The cost to produce a single unit of product, accounting for direct materials, direct labor, and overhead on a per-unit basis.

Absorption Costing

An accounting method that includes all direct costs and fixed and variable overhead costs in the cost of a product.

Required Return

The minimum rate of return needed from an investment to make it worthwhile for the investor.