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:

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution without violating any constraints.

Obtained Value

The actual measured or computed value from a statistical analysis or experiment.

Chi-square Test

A nonparametric statistical test used to determine if there is a significant association between two categorical variables.

Mutually Exclusive

A statistical term describing two events that cannot occur at the same time, implying no overlap between the events.