Internal Fraud Prevention and Detection Measures Are Based on __________

question 86

Multiple Choice

Internal fraud prevention and detection measures are based on __________ and __________.

• A)A detailed recovery plan;containment,including a fault-tolerant system
• B)Perimeter defense technologies,such as e-mail scanners;human resource procedures,such as recruitment screening
• C)General controls;application controls
• D)Physical controls,including authorization;authentication systems

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Definitions:

U.S.GAAP

United States Generally Accepted Accounting Principles, which are the set of accounting standards used for financial reporting in the U.S.

Accrual-Basis

An accounting method that records income and expenses when they are earned or incurred, regardless of when the cash is actually received or paid.

Cash-Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period of time.