Which of the Following Factors Creates an Opportunity for Fraud

question 34

Multiple Choice

Which of the following factors creates an opportunity for fraud?

• A) Greed
• B) Living beyond one's means
• C) Lack of an audit trail
• D) The organization owes it to me

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Definitions:

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.

Company Stock

Shares of ownership in a corporation, representing a claim on the company's earnings and assets.

Incremental Value

The additional value generated by taking a specific action, such as implementing a project, over the base case without taking the action.

Equity-Financed

Describes projects or purchases funded through the issuance of equity or shares, rather than debt.