Which of the Following Statements Is Accurate About "Fraud Risk

question 6

Multiple Choice

Which of the following statements is accurate about "fraud risk factors" considered when conducting an audit?

• A) Factors whose presence indicates that fraud exists.
• B) Factors whose presence often have been observed in circumstances where frauds have occurred.
• C) Factors whose presence will require modification to planned audit procedures.
• D) Factors obtained during the audit which lead to required communications with the audit committee.

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Definitions:

Human Capital Perspective

Viewing employees as assets whose value can be enhanced through investment in education, training, and health improvements.

Invest

Putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.

Resources-Based View

A strategic framework that emphasizes the importance of internal capabilities and resources in gaining competitive advantage.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, often through unique resources, capabilities, or positioning.