Controls That Can Be Instituted to Prevent Financial Fraud Includes

question 90

Multiple Choice

Controls that can be instituted to prevent financial fraud includes

• A)separation of duties where a single person carrying out a series of tasks could commit fraud and take steps to hide it.
• B)the presence of the independent auditors and their review of a company's internal controls.
• C)the presence of the internal auditors and their review of a company's internal controls.
• D)All of the answers are correct.

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Definitions:

Standard Costing

A cost accounting method that assigns a fixed cost to inventory and measures any variances to actual costs.

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected for the level of production achieved, often related to workforce productivity.

Variable Overhead

Costs that fluctuate with the level of production or business activity, such as utilities or raw materials.

Labour Rate Variance

The difference between the actual cost of labor and the expected (or budgeted) cost.