Fraud Examiners Have Four Main Objectives in Performing an Investigation

question 95

Multiple Choice

Fraud examiners have four main objectives in performing an investigation.Which of the following is not one of those objectives?

• A)Determine whether a fraud exists.
• B)Determine who was involved in the fraud.
• C)Determine how the fraud occurred.
• D)Determine the effect on financial statement users.

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Definitions:

Dividends Declared Account

An account used to record the amount of dividends that a company's board of directors has decided to distribute to its shareholders.

Post-closing Trial Balance

A list of all accounts still open after closing entries are made, used to verify the equality of debits and credits.

Retained Earnings

The portion of net income that is kept by the company rather than distributed to shareholders in the form of dividends to be reinvested in the business or pay off debt.

Financial Position Accounts

Accounts that provide information about the resources, obligations, and net worth of an entity at a specific point in time.