Opportunity to Commit Fraud Is Comprised of Three Stages

question 16

Multiple Choice

Opportunity to commit fraud is comprised of three stages.The stage that often takes most time and effort would include

• A) stealing inventory from the warehouse.
• B) selling stolen inventory to get cash.
• C) lapping accounts receivable.
• D) creating false journal entries to overstate revenue.

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Definitions:

Industrial Products

Goods and services designed and marketed for use in production and operations, often sold to other businesses rather than end consumers.

Consumer Products

are goods sold directly to consumers for their personal or household use.

Six-Digit Coding

A system often used in categorizing and organizing information or items, where each item is assigned a unique six-digit code.

Industry Group

A classification involving businesses that operate in the same sector or industry and share similar product lines or services.