Which of the Following Conditions Identified During the Audit Increases

question 47

Multiple Choice

Which of the following conditions identified during the audit increases the risk of employee fraud?

• A)Large amounts of cash in the bank.
• B)Existence of a mandatory vacation policy for employees performing key functions.
• C)Inventory items of small size,but high value.
• D)Presence of reconciling items on a client prepared year-end proof of cash.

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Definitions:

Decomposer

Organisms, typically bacteria and fungi, that break down dead or decaying organisms, thereby playing a key role in the nutrient cycle.

Saccharomyces

A genus of fungi that includes many yeast species, widely used in baking, brewing, and wine-making.

Arbuscular Mycorrhizae

A type of symbiotic relationship between plants and fungi, where the fungus invades the plant roots to enhance nutrient and water absorption.

Endomycorrhizae

A type of mycorrhiza in which the fungus penetrates the cortical cells of the roots of a vascular plant, enhancing nutrient exchange.