In Comparing Management Fraud with Employee Fraud, the Auditor's Responsibility

question 92

Multiple Choice

In comparing management fraud with employee fraud, the auditor's responsibility to discover the fraud is:

• A) greater for management fraud because of management's ability to override existing internal controls.
• B) greater for management fraud because managers are inherently smarter than employees.
• C) the same for both management and employee fraud.
• D) greater for employee fraud because of the larger number of employees in the organisation.

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Definitions:

Classes

Categories in taxonomic classification that rank above orders and below phyla, or divisions in grouping organisms based on shared characteristics.

Characteristics

distinguishing traits, qualities, or properties of an object, person, or thing.

Statocysts

Sensory organs found in invertebrates that help in detecting gravity and spatial orientation.

Crustaceans

A diverse group of aquatic animals within the arthropod phylum including crabs, lobsters, crayfish, shrimp, and barnacles, characterized by a hard exoskeleton and jointed limbs.