Which of the Following Fraud Symptoms Is Least Helpful in Detecting

question 30

Multiple Choice

Which of the following fraud symptoms is least helpful in detecting and often not relevant in financial statement fraud in large organizations?

• A) Behavioral or verbal flags
• B) Tips and complaints
• C) Extravagant lifestyles
• D) Analytical symptoms

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Definitions:

Internal Control

Processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Limitations

Restrictions or constraints that limit the scope, effectiveness, or action of something.

Cash Payments Journal

A financial journal used in accounting to record all cash payments made by a business, including expenses, purchases, and debt repayments.

Bank Reconciliation

The process of matching and comparing the company's financial records against the bank statements to ensure accuracy.