Fraud Occurs When

question 103

Multiple Choice

Fraud occurs when

• A) a misstatement is made and there is both knowledge of its falsity and the intent to deceive.
• B) a misstatement is made and there is knowledge of its falsity but no intent to deceive.
• C) the auditor lacks even slight care in the performance in performing the audit.
• D) the auditor has an absence of reasonable care in the performance of the audit.

---

Definitions:

Criminal Charges

Formal accusations made by a legal authority asserting that an individual has committed a crime.

Code of Professional Conduct

A set of guidelines and ethical standards designed to govern the behavior and decision-making processes of professionals within a specific field or organization.

Business People

Individuals engaged in commercial, industrial, or professional activities, often with the aim of generating profit.

Provincial Business Society

A regional organization or association focused on the promotion and support of local business endeavours and interests.