Stuart, a CFE, Is Investigating a Possible Management Fraud

question 34

Multiple Choice

Stuart, a CFE, is investigating a possible management fraud. He found an email on an employee's computer to use as evidence in the case. Under which category of evidence would an email message fall?

• A) Testimonial Evidence
• B) Documentary Evidence
• C) Physical Evidence
• D) Personal Observation

---

Definitions:

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity position, calculated by dividing current assets excluding inventory by current liabilities.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

Marketable Securities

Financial instruments and assets that are easily convertible into cash, typically with high liquidity and short maturities.

Current Ratio

A financial metric indicating the capacity of a business to meet its obligations due within the next year, determined by dividing its current assets by its current liabilities.