Which of the Following Does Not Represent an Opportunity to Commit

question 25

Multiple Choice

Which of the following does not represent an opportunity to commit fraud?

• A) Significant related-party transactions.
• B) The auditor's relationship with management is strained.
• C) Management is dominated by a single person.
• D) The financial report included highly subjective estimates.

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Definitions:

Inventory Turnover Rate

A financial metric indicating how many times a company's inventory is sold and replaced over a specific period, used to assess efficiency in managing inventory.

Cost Of Goods Sold

The immediate expenses related to the creation of products sold by a business, encompassing both materials and labor costs.

Ending Inventory

The total value of all unsold goods remaining at the end of an accounting period.

Inventory Turnover Rate

A measure of how often inventory is sold and replaced over a period, indicating the efficiency of inventory management.