Which of the Following, If Observed, Would Not Indicate the Need

question 384

Multiple Choice

Which of the following, if observed, would not indicate the need to extend the search for other indicators of fraud in a purchasing department?

• A) The standard of living of one of the purchasing agents has increased.
• B) The internal control structure has significant weaknesses.
• C) The purchasing agents have convinced management to adopt a policy of paying vendors on a more timely basis in order to avoid incurring penalty charges.
• D) The cost of goods procured seems to be excessive in comparison with previous years.

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Definitions:

Preemption

A legal doctrine under which a higher authority's laws take precedence over those of a lower authority when both entities have the power to legislate on a subject.

Mootness

A concept whereby a case is deemed inadmissible for judicial review if the underlying issue has been resolved or rendered irrelevant.

Ripeness

A criterion used in constitutional law to determine if a court case is premature for review because the issues involved have not yet fully developed.

Impossibility

A defense in contract law where a party claims that fulfilling the contractual obligations has become objectively impossible due to unforeseen events.