Individuals Use Financial Statements to Best Detect Fraud by Focusing

question 27

Multiple Choice

Individuals use financial statements to best detect fraud by focusing on:

• A) Unexplained changes in financial statement balances
• B) Earnings expectations
• C) Management discussion and analysis
• D) Consistencies

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Definitions:

Goods And Services

Tangible products that satisfy human wants or needs, and intangible activities or benefits that are offered for consumption.

Pounds

A unit of weight commonly used in the United States to measure heavy objects, equal to 0.453592 kilograms.

Current Account Deficits

A situation where a country's total imports of goods, services, and transfers exceed its exports, reflecting a negative balance in international trade.

Financial Crisis

A situation in which the value of financial institutions or assets drops rapidly, leading to a loss of confidence among investors, lenders, and the public.