Which of the Following Actions Would Most Likely Create an Opportunity

question 13

Multiple Choice

Which of the following actions would most likely create an opportunity for fraud?​

• A)​requiring all documents over seven years old be shredded
• B)​requiring that the department manager authorize purchase orders only for purchase amounts for more than $100
• C)​requiring one password code for each entire department to enter the storeroom
• D)​using a manual accounting system

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Definitions:

Expected Utility

The sum of the utilities coming from all possible outcomes of a deal, weighted by the probability of each occurring.

Risk-loving

An inclination to engage in behaviors or decisions that involve exposure to uncertainty, with the potential for higher rewards.

Expected Value

The sum of the payoffs associated with each possible outcome of a situation weighted by its probability of occurring.

Fixed Salary

A pre-determined amount of pay that an employee receives on a regular basis, such as monthly or annually, regardless of performance or hours worked.