The Major Approaches to Fraud Detection Are Through

question 30

Multiple Choice

The major approaches to fraud detection are through:
I. Red flags that ultimately point to problems underlying the foundation upon which transactions are recorded.
II. Whistleblowers.
III. Targeted risk assessment.

• A) I and II.
• B) II and III.
• C) I and III.
• D) I, II, and III.

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Definitions:

Title To Merchandise

The legal right or ownership of goods and products, which is transferred from the seller to the buyer when the conditions of a sale are met.

Report Form

A form of balance sheet with the “Liabilities” and “Stockholders’ equity” sections presented below the “Assets” section.

Balance Sheet

A financial statement that displays a company’s assets, liabilities, and shareholders' equity at a specific point in time.

Multiple-Step Income Statement

An income statement that separates operating revenues and expenses from non-operating items to calculate net income in several steps.