In Comparing Management Fraud with Employee Fraud, the Auditor's Risk

question 145

Multiple Choice

In comparing management fraud with employee fraud, the auditor's risk of failing to discover the fraud is

• A) greater for management fraud because managers are inherently more deceptive than employees.
• B) greater for management fraud because of management's ability to override existing internal controls.
• C) greater for employee fraud because of the higher crime rate among blue collar workers.
• D) greater for employee fraud because of the larger number of employees in the organization.

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Definitions:

Opiate Drugs

A class of drugs derived from opium that are typically used for their analgesic properties, but can also lead to dependence and addiction.

Analgesics

Medications designed specifically to relieve pain.

Dependence

A state wherein an organism requires a substance or condition for normal functioning, often resulting in withdrawal symptoms without it.

Tolerance

The process by which the body's response to a drug or substance decreases over time, requiring more of it to achieve the same effect.