Which Statement Is True Regarding the Three Fraud Risk Factors

question 945

Multiple Choice

Which statement is true regarding the three fraud risk factors (incentives/pressures, opportunity, and rationalization/attitude) ?

• A) The auditor should determine whether and to what extent fraud risk factors are present as part of the final overall review stage of the audit.
• B) The fraud risk factors should be discussed by engagement personnel during planning.
• C) The existence of all three fraud risk factors indicates that fraud has occurred.
• D) Lack of observation of all three fraud risk factors indicates that fraud has not occurred.

Identify the types of collateral used in secured loan agreements and their purposes.

Comprehend the reasons for and mechanisms behind the provision of trade credit by firms.

Distinguish between different financing arrangements involving a firm’s inventory as collateral.

Recognize the services provided by accounts receivable factors to borrowers.

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Definitions:

The Last Picture Show

A critically acclaimed 1971 film directed by Peter Bogdanovich that focuses on the coming of age of characters in a small Texan town.

Peter Bogdanovich

A director, writer, and actor known for his part in the New Hollywood wave of filmmaking with critically acclaimed films in the 1970s.

Technical Perfectionist

An individual, often in the realm of filmmaking or art, who strives for extreme accuracy and impeccable execution in technical aspects of their work.

Pervasive Misanthropy

A widespread general disdain or hatred towards humanity or the human condition, often reflected in literature, philosophy, and cultural narratives.