Which of the Following Factors Is, According to the AICPA

question 48

Multiple Choice

Which of the following factors is, according to the AICPA, an example of the rationalizations part of the fraud triangle?

• A) The majority owner is also the manager of the company, and makes no distinction between his personal money and the business's money.
• B) Measurement of certain assets involves estimates that are hard to double check.
• C) Internal controls are deficient, due to ineffective accounting and information systems.
• D) There is a high degree of competition in the company's industry.

---

Definitions:

Populations

In statistics, a population is the entire pool of individuals or items from which a statistical sample is drawn for analysis.

Two-Way Table

A tabular format for organizing data that simultaneously categorizes subjects based on two distinct characteristics or attributes, facilitating comparative analysis.

Statistical Software

Computer applications designed to perform statistical analysis, including descriptive statistics, inferential statistics, data modeling, and graphical representation of data.

SAS Proficiency

The level of skill and knowledge in using the Statistical Analysis System (SAS) software for data analysis.