Unaware of Data Analysis Tools Available to the Internal Auditors,a

question 39

Multiple Choice

Unaware of data analysis tools available to the internal auditors,a store employee frequently processes cash returns without a receipt for $99,which is just below the amount requiring manager approval of $100.An analysis using which of the following would likely (and quickly) identify the employee's fraudulent behavior?

• A) Leading digits hypothesis
• B) Moore's law
• C) Benford's law
• D) Clustering

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Definitions:

Net Income

The remaining earnings of a business after deducting all costs and taxes from its total income.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting the cost of goods sold.

Net Income

The final profit figure for a company, arrived at by removing all expenses and tax payments from its revenue.

Increasing Costs

A situation where production or operating expenses grow over time, often due to inflation, increased demand for resources, or higher labor costs.