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:

Punctuated Equilibrium

Punctuated Equilibrium is an evolutionary theory proposing that species evolve rapidly during short periods of time, followed by long periods of stasis (little or no evolutionary changes).

New Species

A population of organisms that has evolved distinct characteristics, differentiating it from other species.

Intermediate Forms

Organisms or structures that show characteristics bridging two different groups, often seen in evolutionary contexts.

Paedomorphosis

Retention of juvenile or larval features in a sexually mature animal.