When Comparing the Auditor's Responsibility for Detecting Employee Fraud and for Detecting

question 101

Multiple Choice

When comparing the auditor's responsibility for detecting employee fraud and for detecting errors, the profession has placed the responsibility:

• A) equally on discovering either one.
• B) on the senior auditor for detecting errors and on the manager for detecting employee fraud.
• C) more on discovering errors than employee fraud.
• D) more on discovering employee fraud than errors.

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Definitions:

Evaluation Overload

A state of being overwhelmed by the need to assess too much information or too many objects of potential interest.

Interference

The phenomenon in memory where one piece of information blocks or disrupts the retrieval or learning of another.

Decay

The process of decline or deterioration over time.

Encoding Failure

A situation where the brain fails to create a memory link for information, making it difficult to remember later on.