Which of the Following Factors Is the Most Significant Contributor

question 18

Multiple Choice

Which of the following factors is the most significant contributor to fraud risk?

• A) poor hiring practices
• B) collusion between employees and third parties
• C) the industry in which the entity operates
• D) overriding of internal controls

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Definitions:

Chain of Command

The official hierarchy within an organization that dictates the authority, responsibility, and communication flow among its members.

Line Departments

Parts of an organization directly involved in its primary revenue-generating activities, typically involved in the production, sale, or provision of services.

Staff Departments

Staff departments provide specialized administrative support and services to the organization and its management, without being directly involved in production activities.

Technical Support

A service provided by companies to help customers solve technical problems or issues with products or services.