When Testing for Fraudulent Hours or Fraudulent Expense Reports

question 105

Multiple Choice

When testing for fraudulent hours or fraudulent expense reports

• A) it is easy for the auditor to discover fraudulent hours because of the abundance of available evidence.
• B) it is difficult to prevent fraud in these two areas with adequate internal controls.
• C) management falsification of expense reports can be an indicator of disregard for internal controls and the potential for fraud in other areas.
• D) examining payroll records for approval is an important substantive test of transactions to uncover fraudulent hours.

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Definitions:

Executive Summary

A brief section at the beginning of a document, report, or business plan, summarizing the most important points for quick understanding.

Qualitative and Quantitative

Refers to research or analysis that includes both descriptive (qualitative) and numerical (quantitative) aspects for a comprehensive understanding.

Financial Statement Analysis Report

A document that contains an evaluation of a company's financial performance and health, often using ratios and comparing trends over time.

Long-term Obligations

Long-term obligations refer to debts or financial commitments that are due to be paid after one year, including bonds, mortgages, and long-term loans.