Your Audit Team Working with a Newly Acquired Client,discovers That

question 26

Multiple Choice

Your audit team working with a newly acquired client,discovers that there has been fraudulent financial reporting for the past 5 years.Who is most likely to have been involved in the fraud?

• A)Middle management in positions of trust
• B)Disgruntled employees
• C)Top management
• D)The accountants in charge of preparing the financial statements

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Definitions:

Entered Completely

A term that implies that data or information has been fully inputted into a system or document without omissions.

Risk-Adaptability Analysis

An assessment method used to evaluate the flexibility and responsiveness of a system, organization, or project to potential risks.

Social Consensus

An agreed-upon understanding among members of a society on various issues and norms.

Public Policy

Principles and standards considered by the government in addressing issues which affect the public at large.