Which of the Following Statements About Fraud Is Not True

question 43

Multiple Choice

Which of the following statements about fraud is not true?

• A) Fraud is defined in generally accepted auditing standards as any act that results in a material misstatement in financial statements that are the subject of an audit.
• B) Auditors are concerned about two types of misstatements that are relevant to the auditor's consideration of fraud.
• C) The types of fraud that are the least frequent are also the most expensive.
• D) The fraud triangle includes opportunity, incentives, pressures, attitudes and rationalization.
• E) Auditors should conduct discussions about management overrides of internal controls with employees having varying levels of authority including personnel not directly involved in the financial reporting process

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Definitions:

Reports

Documents or presentations that provide information or analysis on a specific topic, often used to convey findings or progress to others.

Solutions

Strategies or answers devised to solve problems or address challenges effectively.

Problem

A situation, question, or matter that presents difficulty, requiring a solution or answer.

Defined

Clearly described or explained, with specific boundaries or characteristics made explicit.