The Internal Auditor of Trinity,Inc

question 7

Multiple Choice

The internal auditor of Trinity,Inc.suspected that the books of accounts did not show a true and fair value of the business.On his advice,the management of the company appointed Ravenwood to investigate into the matter.Ravenwood found that the suspicions of the internal auditor were reasonable.He created a fraud hypothesis and tested and refined the hypothesis via financial statement analysis and journal entry analysis.Which of the following should be Ravenwood's immediate next step?

• A) Present recommendations for resolution and remediation of fraudulent activities.
• B) Draw conclusions and communicate results of the analysis.
• C) Test and refine the hypothesis via interactive evidence gathering.
• D) Determine misappropriations if any and the specific scheme employed.

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Definitions:

Pessimistic

Having a tendency to see the worst aspect of things or believe that the worst will happen.

Oral Stage

In Freudian psychoanalysis, an early life stage focusing on the pleasures and frustrations associated with the mouth, sucking, and being fed.

Characteristic Personality Traits

Features that are distinctive and describe consistent behaviors in a person across different situations and over time.

Primary Process

In psychoanalytic theory, the unconscious thought processes that are primitive and symbolic, driven by the pleasure principle.