Which of the Following Actions by the Company Auditor Increases

question 5

Multiple Choice

Which of the following actions by the company auditor increases the potential to detect fraud?​

• A)​comparing current procedure test results to a prior year
• B)​performing new procedures not conducted in prior years
• C)​assigning the same audit staff to the audit from year to year
• D)​carefully checking the audit test results

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Definitions:

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and free entry and exit, leading to price-taking behavior.

Long-Run Equilibrium

A state in which all firms in a market are earning normal profits, and there is no incentive for firms to enter or exit the market.

Marginal Cost

Marginal cost is the additional cost incurred by producing one additional unit of a good or service.

Celebrity Spokesperson

A famous individual who is paid to use their fame to help promote a product or service.