Which One of the Following Statements Is True

question 59

Multiple Choice

Which one of the following statements is true?

• A) It is usually easier for the auditor to uncover errors than fraud.
• B) It is usually equally difficult for the auditor to uncover errors or fraud.
• C) It is usually easier for the auditor to uncover fraud than errors.
• D) None of the above

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Definitions:

Disposable Income

The budget left for household savings and spending after the deduction of income taxes.

Autonomous Consumption

The level of consumption that occurs when income is zero, representing basic necessities that individuals will purchase regardless of their income.

APC

It is defined as the proportion of income that goes into consumption expenses, termed as the Average Propensity to Consume.

Disposable Income

Fiscal assets at households' disposal for spending and saving after income taxes have been subtracted.