Which of the Following Factors Is the Most Significant Contributor

question 1

Multiple Choice

Which of the following factors is the most significant contributor to fraud risk?

• A) The industry in which the entity operates
• B) Overriding of internal controls
• C) Poor hiring practices
• D) Collusion between employees and third parties

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Definitions:

Market Price

The market value at which a service or asset is currently traded.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a specified quantity of an asset at a set price within a specified time.

Strike Price

The rate at which an option's owner has the right to purchase (for a call option) or offload (for a put option) the underlying asset or commodity.

Market Price

The current price at which an asset or service can be bought or sold.