Which Situation Below Makes It Easy for Someone to Commit

question 3

Multiple Choice

Which situation below makes it easy for someone to commit a fraud?

• A) placing excessive trust in key employees
• B) inadequate staffing within the organization
• C) unclear company policies
• D) All of the above situations make it easy for someone to commit a fraud.

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Definitions:

Equity Account

An account that represents the owner's interest in a company's assets, typically reflecting the amount of funds that remain for the owners after all liabilities have been subtracted.

Non-controlling Interest

A minority shareholding of less than 50% in a subsidiary's equity, not giving the shareholder the controlling interest in the subsidiary's financial and operational policies.

Majority

The greater part or more than half of a total amount, often used to describe the ownership interest that allows for control in decision-making processes.

Voting Power

The total number of votes that can be cast by a shareholder or group of shareholders to influence company decisions in shareholder meetings.