Which of the Following Might Alert an Auditor to the Possibility

question 5

Multiple Choice

Which of the following might alert an auditor to the possibility of fraud in a division?

• A) The division is not scheduled for an external audit this year. II. Sales have increased by 10 percent. III. A significant portion of management's compensation is directly tied to reported net income of the division.
• B) I only
• C) III only
• D) I and II only
• E) I, II, and III

Recognize the different economic systems and their key features, such as capitalism and socialism.

Identify the characteristics of professional employment and its regulatory bodies.

Understand the implications of industrialization and post-industrialization on society and the economy.

Recognize the impact of part-time work and educational requirements on the labour market.

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Definitions:

Oligopolies

Market structures characterized by a small number of firms controlling a large proportion of the market share, often leading to limited competition.

Outright Collusion

An explicit agreement among competitors to fix prices, output, or trading terms in the market, which is illegal in many jurisdictions.

Ford Motor Company

An American multinational automaker that was founded by Henry Ford and incorporated on June 16, 1903.

Oligopoly

A market structure characterized by a small number of firms dominating the market, leading to limited competition and higher prices for consumers.