Which of the Following Statements Best Describes the Primary Difference

question 73

Multiple Choice

Which of the following statements best describes the primary difference between an audit and forensic accounting?

• A) An audit has the focused responsibility to detect fraud in the client organization, while forensic accounting sets out to prevent fraud.
• B) An audit has no responsibility for detecting fraud, while forensic accounting provides an audit specific to material fraud discovery.
• C) An audit must follow Generally Accepted Auditing Standards, while the forensic accountant is bound to Generally Accepted Fraud Standards.
• D) An audit utilizes sampling techniques to detect material misstatements, while forensic accounting examines the entire population of fraudulent transactions.

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Definitions:

Noncustodial Fathers

Fathers who do not have legal custody of their child/children, and thus the children reside primarily with the other parent.

Custodial Mother

A mother who has been granted primary legal and/or physical custody of her child(ren) by a court.

Child Support

Financial contributions required by law to be made by a non-custodial parent to support their child(ren)'s upbringing and welfare.

Remarriage

Entering into marriage again after one or more previous marriages have ended through divorce or widowhood.