Which of the Following Illustrates the Proactive Approach to Fraud

question 45

Multiple Choice

Which of the following illustrates the proactive approach to fraud detection?

• A) Using data-mining software to identify fraud
• B) Using Benford's law to identify fraud
• C) Locating accounting anomalies and investigating for possible fraud
• D) Learning about the business or operations to be studied prior to investigating for fraud

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Definitions:

Revenues

The income that a business receives from its normal business activities, typically from the sale of goods and services to customers.

Costs

The total expenditures or the amount of resources used in the production of goods or services, including materials, labor, and overhead expenses.

Mass Customization

A production technique that allows for the customization of products to meet individual customer needs at mass production prices.

Price Discrimination

Charging different prices to different buyers for products of like grade and quality.