The Second Step to Develop an Approach to Fraud Detection

question 13

Multiple Choice

The second step to develop an approach to fraud detection is to:

• A) develop an understanding of the control environment.
• B) develop a system of internal controls.
• C) define the authority of the audit committee.
• D) identify the members of internal audit and the audit committee.

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Definitions:

True Zero

A point on a scale which indicates the absolute absence of the quantity being measured.

Computed

Calculated or processed using a computer or computational method.

NOIR

An acronym representing four levels of measurement in statistics: Nominal, Ordinal, Interval, and Ratio.