In Order for Auditors to Be Able to Recognize Potential

question 35

Multiple Choice

In order for auditors to be able to recognize potential fraud, they must be aware of the basic characteristics of fraud. Which of the following is not a characteristic of fraud?

• A)Intentional deception.
• B)Taking unfair or dishonest advantage of other people.
• C)Perpetration for the benefit or detriment of the organization.
• D)Negligence on the part of executive management.

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Definitions:

Equipment

Tools, machinery, or other apparatus used for specific purposes, especially in industrial or professional settings.

Double-Declining-Balance

A method of accelerated depreciation which doubles the regular depreciation rate, reducing the book value of assets more quickly.

Resale Value

The estimated value for which an asset can be sold in the marketplace at a future date, often considered for vehicles and property.

Equipment

Devices or tools necessary for completing specific tasks or operations, often used in various industries.