Which of the Following Is True of the Fraud Scale

question 26

Multiple Choice

Which of the following is true of the fraud scale?

• A) Fraud is more likely to occur when there is high pressure, greater opportunity, and low personal integrity.
• B) Fraud is more likely to occur when there is low pressure, lesser opportunity, and low personal integrity.
• C) Fraud is more likely to occur when there is high pressure, lesser opportunity, and low personal integrity.
• D) Fraud is more likely to occur when there is low pressure, greater opportunity, and low personal integrity.

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Definitions:

Service Department Allocations

The process of distributing the costs of service departments to producing or operating departments based on their usage of services.

Service Department Charge Rate

The rate at which internal service departments charge other parts of the same organization for the services rendered.

Accounting Department

The division within a company responsible for managing financial records, ensuring compliance with accounting standards, and producing financial statements.

Service Department Cost

Involves the expenses associated with the departments that do not directly produce goods but provide support or services to other departments within an organization.