The Primary Responsibility for Preventing Fraud in an Organization Lies

question 38

Multiple Choice

The primary responsibility for preventing fraud in an organization lies with

• A) The audit committee of the board of directors.
• B) The internal audit function.
• C) The external auditor.
• D) The organization's management.

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Definitions:

Going Concern

An accounting assumption that a company will continue to operate for the foreseeable future, thus justifying the presence of its assets and liabilities.

Financial Restructuring

The process of reorganizing a company's financial structure, often involving re-negotiation of debts and equity, to improve its liquidity and ensure its survival.

WACC

The weighted average cost of capital, which is the average rate of return a company is expected to pay its security holders to finance its assets.