Which of the Following Statements Is Accurate About "Fraud Risk

question 13

Multiple Choice

Which of the following statements is accurate about "fraud risk factors" considered when conducting an audit?

• A)If the factors are present,it indicates that fraud exists.
• B)The factors often have been observed in circumstances where frauds have occurred.
• C)The factors will require modification to planned audit procedures.
• D)The factors obtained during the audit will lead to required communications with the audit committee.

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Definitions:

Contingency Theories

Management theories suggesting that optimal decisions or leadership styles depend on the specific situation and variables involved.

Lewin/Lippitt/White Study

A series of experiments by Kurt Lewin, Ronald Lippitt, and Ralph White that explored the effects of different leadership styles on group behavior.

Leader-Member Exchange Theory

A theory that explores how leader-member relationships develop over time into a system of in-group and out-group members, influencing organizational dynamics and individual outcomes.

Subordinates

Individuals who are ranked lower in terms of authority or position within an organizational hierarchy, often reporting to supervisors or managers.