Of the Following Examples of Fraud,which Will Be the Most

question 38

Multiple Choice

Of the following examples of fraud,which will be the most difficult to prevent and detect? Assume the company enforces adequate segregation of duties.

• A) Jim issues credit cards to him and Marie, and when the credit card balances are just under $1,000, Marie writes off the accounts as bad debt. Jim then issues new cards.
• B) An employee puts inventory behind the dumpster while unloading a vendor's delivery truck, then picks up the inventory later in the day and puts it in her car.
• C) A mail room employee steals a check received from a customer and destroys the documentation.
• D) The accounts receivable clerk does not record sales invoices for friends or family, so they can receive free goods.

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Definitions:

Coefficient Of Correlation

A statistical measure that calculates the strength and direction of the linear relationship between two variables, represented by values between -1 and 1.

Coefficient Of Determination

A measure used in statistical analysis that assesses the goodness of fit of a model, representing the proportion of variance in the dependent variable that is predictable from the independent variable(s).

Regression Analysis

A statistical method for modeling the relationship between a dependent variable and one or more independent variables.

Independent Variables

Variables in an experiment or model that are manipulated or controlled by the researcher to investigate their effect on dependent variables.