Fraud

question 37

Multiple Choice

Fraud:

• A) Involves deception on the part of the auditor in conducting an audit of the financial statements.
• B) Is similar to gross negligence.
• C) Is defined in the Securities Acts of 1933 and 1934.
• D) All of the above.

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Definitions:

Polygraph

A device that measures and records several physiological indices such as blood pressure, pulse, respiration, and skin conductivity while the person is asked and answers a series of questions.

Physiological Functioning

Refers to the normal operation of physical and biological processes in living organisms.

Drive-Reduction Theory

A concept in psychology that explains motivation as a mechanism to reduce an internal state of tension caused by unmet needs.

Drives

Basic, biological impulses that motivate behavior, such as hunger or thirst, pushing organisms to fulfill their needs.