Which of the Following Is NOT Useful in Detecting a Fraud

question 48

Multiple Choice

Which of the following is NOT useful in detecting a fraud where fictitious assets are recorded in financial statement accounts?

• A) Total fixed assets÷total assets
• B) Total fixed assets÷long-term debt
• C) Individual fixed asset account balances÷total fixed assets
• D) Fixed assets÷total current liabilities

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Definitions:

Do Your Best Goal

An objective that encourages individuals to perform to the highest of their abilities without specific performance benchmarks.

Valence

In psychology, refers to the intrinsic attractiveness (positive valence) or averseness (negative valence) of an event, object, or situation.

Specific, Challenging

Goals that are clear and precise, requiring effort and commitment to achieve, and are often motivating.

Expectancy Theory

A motivation theory that suggests an individual's motivation is influenced by their expectation that their effort will lead to desired performance and that performance will lead to a desired reward.