What Is the Primary Reason for Management's Ability to Easily

question 69

Multiple Choice

What is the primary reason for management's ability to easily overvalue inventory without rapid detection by auditors?

• A) The limited volume of transactions in the inventory accounts.
• B) The auditor's assessment of inventory as a low-risk area.
• C) Complexity in the valuation of inventory.
• D) Consideration by the auditor of non-financial indicators of inventory fraud.

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Definitions:

Behavioral Genetics

The field of study that examines the role of genetic and environmental influences on behaviors.

Single-Factor Explanations

The attribution of a phenomenon or behavior to a single cause, ignoring the potential complexity and multiplicity of contributing factors.

Risk Factors

Aspects or conditions that increase the likelihood of developing a disease, disorder, or adverse condition.

Specific Causes

Particular factors or conditions that directly lead to a certain effect or outcome, underlying the cause-and-effect relationship.