Why Do Many Fraud Cases Go Unreported and Unprosecuted

question 21

Multiple Choice

Why do many fraud cases go unreported and unprosecuted?

• A) Major fraud is a public relations nightmare.
• B) Fraud is difficult, costly, and time-consuming to investigate and prosecute.
• C) Law enforcement and the courts are often so busy with violent crimes that little time is left for fraud cases.
• D) all of the above

---

Definitions:

Casualty

An unexpected or sudden event causing loss or damage, often used in insurance to refer to accidents or mishaps causing physical harm or property damage.

Retail Basis

A method of inventory accounting where inventory is valued at retail prices, then converted to a cost basis using a predetermined cost-to-retail ratio.

Lower of Average Cost

A method to value inventory at the lower of its historical average cost or the market cost, ensuring a conservative asset valuation.

Estimated Inventory

An approximate calculation or judgment of the quantity of goods available in stock.