Which of the Following Is Not a Factor That Relates

question 139

Multiple Choice

Which of the following is not a factor that relates to opportunities to commit fraudulent financial reporting?

• A) lack of controls related to the calculation and approval of accounting estimates
• B) ineffective oversight of financial reporting by the board of directors
• C) management's set of ethical values
• D) high turnover of accounting, internal audit, and information technology staff

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Definitions:

Labor

Human effort, both physical and mental, used in the production of goods and services.

Production Possibilities

The various combinations of goods and services that can be produced from a fixed set of resources.

Circular-Flow Diagram

An economic model depicting how money, goods, and services move through an economy between households and firms.

Economy

An organized system of production, distribution, and consumption of goods and services within a specific geographical area, involving various agents and market forces.