Detection of Fraud Refers to _______

question 115

Multiple Choice

Detection of fraud refers to _______.

• A)the use of controls and procedures aimed at uncovering a fraud should one occur
• B)the use of controls and procedures aimed at avoiding a fraud
• C)auditors who assess fraud risk factors
• D)incentives to commit fraud

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Definitions:

Machine Hours

A measurement of the amount of time a machine is operated during a given period.

Variable Manufacturing Overhead

Costs of manufacturing that vary with the level of production, such as supplies and utilities used in the production process.

Job A496

This is a reference to a specific task, project, or work order within a job costing system, identified by the code A496.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual products or job orders, based on a formula that estimates the costs.