The Auditor Is Most Likely to Presume That a High

question 49

Multiple Choice

The auditor is most likely to presume that a high risk of a fraud relating to the misappropriation of assets exists if:

• A)the entity is a multinational company that does business in numerous foreign countries.
• B)the entity does business with several related parties.
• C)inadequate segregation of duties places an employee in a position to perpetrate and conceal theft.
• D)inadequate employee training results in lengthy EDP exception reports each month.

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Definitions:

Abdomen

The part of the body between the chest and pelvis, containing most of the digestive organs along with the kidneys and spleen.

Hips And Thighs

Body areas located at the upper part of the legs and around the pelvic region, known for commonly accumulating fat.

Subcutaneous Fat

The layer of fat located directly beneath the skin.

Storage Fat

Body fat accumulated and stored in adipose tissue, serving as an energy reserve and insulation for the body.