Which of the Following Is an Example of a Non-Control

question 20

Multiple Choice

Which of the following is an example of a non-control factor of fraud?

• A) An employee inflates an expense report
• B) An auto shop uses sub-standard parts and charges for premium transmission parts
• C) Internal controls are overridden so a manager can steal cash
• D) An investment opportunity is run by someone previously convicted of fraud

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Definitions:

Disposable Income

Money that households can allocate towards savings and spending after income tax charges.

C + I

An economic term that represents the sum of consumer spending (C) and investment spending (I); key components of the Gross Domestic Product (GDP) formula.

Investment

The allocation of resources, such as capital or time, in the hope of generating future profits or benefits.

Capacity Utilization Rate

The percentage of a firm's total production capacity that is actually being used in production.