The Auditor Is Most Likely to Presume That a High

question 44

Multiple Choice

The auditor is most likely to presume that a high risk of a fraud exists if

• A) The entity is a multinational company that does business in numerous foreign countries.
• B) The entity does business with several related parties.
• C) Inadequate segregation of duties places an employee in a position to perpetrate and conceal theft.
• D) Inadequate employee training results in lengthy EDP exception reports each month.

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Definitions:

Total-Market Approach

A marketing strategy that aims to broaden the reach and applicability of a product or service to all potential consumers, not just targeted segments.

Psychological Variable

A factor related to the mental or emotional state that influences consumer behavior or human decision-making.