Auditors Will Assess the Risk of Fraud by Considering _______

question 31

Multiple Choice

Auditors will assess the risk of fraud by considering _______.

• A)fraud risk factors that may not be present, such as pressure and opportunities for management to commit fraud
• B)fraud risk factors that may be present, such as pressure and opportunities for management to commit fraud
• C)fraud risk factors that may be present, such as a lack of pressure and opportunities for management to commit fraud
• D)management's opinion and statements on whether fraud is occurring or not

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Definitions:

Prior Service Cost

The cost associated with the increase in pension benefits related to years of service credited in a pension plan amendment.

Straight-Line Basis

A method of calculating depreciation and amortization by evenly spreading the cost of an asset over its useful life.

Pension Retirement Benefits

Long-term benefits or compensations provided to employees upon retirement, which may include contributions made by the employer to a pension plan.

U.S. Tax Laws

The body of laws governing federal, state, and local taxation in the United States, affecting individuals, businesses, corporations, and other entities.