Which of the Following Is the Most Common Method of Detecting

question 1

Multiple Choice

Which of the following is the most common method of detecting occupational fraud?

• A)Financial Statement Audit
• B)Management Review
• C)Internal Audit
• D)Tip from an employee, customer, or vendor

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Definitions:

Sunk Costs

Sunk costs are expenses that have already been incurred and cannot be recovered.

Opportunity Costs

The forfeiture of possible benefits from different options when selecting one option over the others.

Terminal Cash Flow

The net cash flow received or paid at the end of a project's life, including salvage value and net working capital recovery.

Straight Line

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