The Primary Way That Fraud Is Prevented and Detected Is

question 7

Multiple Choice

The primary way that fraud is prevented and detected is through a proper system of:

• A) checks and balances.
• B) management directives.
• C) internal control.
• D) internal and external audits.

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Definitions:

Absorption

In accounting, it refers to the process of incorporating all costs of production into the value of a product, including both direct and indirect expenses.

Margin Of Safety Ratio

A financial metric that measures the difference between actual or projected sales and the break-even point.

Margin Of Safety

The difference between actual or expected sales and sales at the break-even point.

Actual

Pertaining to the real, recorded, or true values or outcomes, as opposed to estimated, planned, or theoretical figures.