The Main Deterrent for Fraud in the Corporate Environment

question 6

Multiple Choice

The main deterrent for fraud in the corporate environment:

• A) remains the internal audit team.
• B) remains the external audit team.
• C) is the threat of getting caught.
• D) is the effectiveness of the SEC and FBI investigators.

Apply depreciation methods and principles to complex scenarios, including disposals and changes in estimations.

Understand the differences between IFRS and GAAP in terms of asset valuation and depreciation.

Calculate depreciation expenses using different methods such as straight-line, double-declining balance, sum-of-the-years'-digits, and activity method.

Identify and correct the impact of changes in depreciation estimates on financial statements.

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Definitions:

Accommodation

In cognitive development, the process by which an individual modifies existing cognitive schemas, perceptions, and understandings to make new information fit.

Habituation

The gradual decline in the intensity, frequency, or duration of a response when repeatedly exposed to a stimulus; indicates learning.

Sensory Memory

The shortest-term element of memory, which is the ability to retain impressions of sensory information after the original stimuli have ended.

Long-Term Memory

The aspect of memory where information is stored for a lengthy period, ranging from several minutes to a lifetime.