Which Fraud Is Most Difficult to Perpetrate for Multiple Years

question 13

Multiple Choice

Which fraud is most difficult to perpetrate for multiple years?

• A) Overstating inventory - because last year's overstatement must be offset in the current year.
• B) Overstating inventory - because physical assets are easily audited making it easy to detect inventory fraud in the long run
• C) Overstating revenue - because auditors focus the most attention on revenue recognition
• D) Overstating revenue - because it is difficult to create fake cash year after year

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Definitions:

Nonthreatening Climate

An environment where individuals feel safe and are encouraged to express their ideas and concerns without fear of negative consequences.

Role Expectations

Refer to the anticipated behaviors and responsibilities assigned to an individual in a particular position within a social, professional, or familial setting.

Cultural Barriers

Obstacles or challenges in communication, understanding, and social interaction arising from differences in cultural backgrounds and practices.

Horizontal Communication

The exchange of information, ideas, and messages between peers or colleagues at the same level within an organization.