Which of the Following Creates Opportunities for Fraud

question 38

Multiple Choice

Which of the following creates opportunities for fraud?

• A)An audit trail
• B)Inability to judge quality of performance
• C)Controls that prevent or detect fraud
• D)Disciplining fraud perpetrators

---

Definitions:

Inventory

Inventory comprises all the goods and materials held by a company for the purpose of resale or incorporation into their product.

Credit Card

A payment card issued by financial institutions that allows cardholders to borrow funds for purchases, subject to repayment with interest.

Accounts Receivable Period

The average number of days that a company takes to collect payment after a sale has been made, indicative of the business's efficiency in collecting its receivables.