Which One of the Following Statements Is True? Misstatements Found

question 28

Multiple Choice

Which one of the following statements is true? Misstatements found in the previous year's audit:

• A) have a high likelihood of occurring again in the current year's audit.
• B) and occurring again in the current year's audit would be an indication of management fraud.
• C) and occurring again in the current year's audit would be an indication of employee fraud.
• D) have little likelihood of occurring again in the current year's audit.

---

Definitions:

Disagreement Value

The value that parties expect to obtain if they decide not to agree or conclude a negotiation or agreement.

Storekeeper

A person in charge of the day-to-day operation of a store or warehouse, overseeing inventory and sales.

Sale Price

The final price at which a product or service is sold to consumers.

Bargaining Position

Bargaining position refers to the relative power or advantage one party has over another during negotiations, influencing the terms and outcomes.