Which Two of the Following Characterize the Work of Fraud

question 15

Multiple Choice

Which two of the following characterize the work of fraud examiners? I.Analysis of control weaknesses for determination of acceptable fraud risk.
II) Analysis of control strengths as a basis for planning other audit procedures.
III) Determination of a materiality amount that represents a significant misstatement of the financial statements.
IV) Thinking of a materiality amount in cumulative terms-that is,becoming large over a number of years.

• A) I & II.
• B) II & IV.
• C) I & III.
• D) I & IV.

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Definitions:

Job Cost Sheet

A document that records and tracks the costs associated with a specific job or project, detailing direct labor, direct materials, and overhead.

Source Document

An original record containing the details to substantiate a transaction entered in an accounting system.

Labor Time Tickets

Documents used to record the amount of time an employee spends on various jobs or projects, critical for job costing and payroll.

Work In Process Inventory

Items or goods in the production process but not yet completed; a stage between raw materials and finished goods.