In Comparing Management Fraud with Employee Fraud, the Auditor's Risk

question 145

Multiple Choice

In comparing management fraud with employee fraud, the auditor's risk of failing to discover the fraud is

• A) greater for management fraud because managers are inherently more deceptive than employees.
• B) greater for management fraud because of management's ability to override existing internal controls.
• C) greater for employee fraud because of the higher crime rate among blue collar workers.
• D) greater for employee fraud because of the larger number of employees in the organization.

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Definitions:

Sales Commission

A portion of the sale price of a product or service that is paid to the individual or entity responsible for making the sale.

Share Value

The price of a single share of stock in a company, reflecting the market's valuation of the company.

Student To Teacher Ratio

The student to teacher ratio is a measure indicating the number of students for every teacher, used to gauge the level of educational attention and resources available to students.

Suggested Retail Price

The price at which the manufacturer recommends a retailer sell a product for to consumers.