Which of the Following Best Describes an Action That Can

question 13

Multiple Choice

Which of the following best describes an action that can cause a whistle-blowing system in place in the organization to fail?

• A) The organization requires employees to report all suspicious activity.
• B) The employee suspecting fraud reports directly to his/her supervisor's manager.
• C) Management is slow to act on reports of suspected fraud.
• D) An extensive code of ethics is in place and on file in order to answer employee inquiries.

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Definitions:

Withdrawal

Removing funds from an account, or the act of taking money out from a partnership or investment, often referring to the distribution of assets to owners or partners.

Unearned Revenue

Money received by an individual or company for a service or product yet to be provided or delivered.

Drawing

Withdrawals of cash or other assets from a business by the owner for personal use, affecting the owner's equity.

Drawing Accounts

Personal accounts of the owners or partners in a business representing withdrawals of the business's assets for personal use.