Which of the Following Is Most Likely an Example of an Opportunity

question 11

Multiple Choice

Which of the following is most likely an example of an opportunity that increases the risk that a fraud may have been perpetrated?

• A)A high volume of transactions close to year-end
• B)A high turnover of clerical staff
• C)A high reliance on simple accounting transactions
• D)A high amount of depreciation expense

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Definitions:

One-Year Rule

A legal principle stating certain contracts must be in writing if they cannot be performed within one year.

Oral Promise

A commitment or agreement conveyed through spoken words rather than in written form, which may or may not be legally binding.

Real Property

Land and any structures affixed to it, including rights associated with ownership of the land and its buildings.

Prevent Fraud

The set of strategies, actions, or measures implemented to detect, stop, and deter deceptive practices intended to gain unlawful or unfair advantage.