Which Is Not a Method of Preventing Fraud Through Control

question 5

Multiple Choice

Which is not a method of preventing fraud through control activities

• A) Separation of Duties
• B) Sniffing
• C) Authorization of transactions and activities
• D) Physical control over assets and records

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Definitions:

Standby Underwriting

A financing arrangement in which an underwriter agrees to buy any unsold shares after a public offering.

Underpriced IPO

An initial public offering priced below its market value, often leading to immediate gains for initial investors.

Leaves Money On The Table

A term used when an initial public offering (IPO) is priced lower than what the market is willing to pay, resulting in potential earnings not captured by the issuer.

Prospectus

An official legal document that companies must provide to investors, detailing information about an investment offering for sale to the public.