During a Fraud Interview, It Was Discovered That Unquestioned Authority

question 33

Multiple Choice

During a fraud interview, it was discovered that unquestioned authority enabled a vice president to steal funds from the organization. Which of the following best describes this condition?

• A) Scheme.
• B) Opportunity.
• C) Rationalization.
• D) Pressure.

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Definitions:

Direct Labor

The wages paid to workers who are directly involved in the production or manufacture of goods or services.

Direct Materials

Raw materials that can be directly attributed to the production of finished goods.

Relevant Range

The spectrum of operations within which the behaviors of variable and fixed costs are considered accurate.

Operating Decisions

Definition: Decisions made by management related to the day-to-day operations of a company, including costs, production, and pricing strategies.