Insiders Are Frequently the Ones Who Commit Fraud Because

question 75

Multiple Choice

Insiders are frequently the ones who commit fraud because

• A)they are more dishonest than outsiders.
• B)they need money more than outsiders.
• C)they are less likely to get caught than outsiders.
• D)they know more about the system and its weaknesses than outsiders.

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle, including accounts payable and short-term loans.

Accounting Information

Data related to the financial transactions and status of an organization, used for analysis, reporting, and decision making.

Relevance

The importance of information in decision-making; it must be timely and have predictive and confirmatory value.

Going Concern Assumption

The accounting principle that a company will continue to operate indefinitely, without the intention or necessity of liquidation.