Two of the Most Useful Warning Signals That Can Indicate

question 7

Multiple Choice

Two of the most useful warning signals that can indicate that revenue fraud is occurring are

• A) analytical procedures and documentary discrepancies.
• B) analytical procedures and misappropriation of assets.
• C) documentary discrepancies and vague responses to inquiries.
• D) missing audit evidence and vague responses to inquiries.

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Definitions:

Foreign Aid

Financial or material assistance given by one country to another for development, emergency relief, or economic stabilization.

Federal Spending

Government expenditure funded by the federal budget, including infrastructure, defense, social services, and interest payments.

Social Security taxes

Funds gathered from both workers and their employers to support the Social Security system, offering benefits for retirement, disability, and survivors.

IRS

The Internal Revenue Service, the federal agency responsible for administering and enforcing the tax laws and collecting taxes in the United States.