Which of the Following Is a Major Factor in Management's

question 23

Multiple Choice

Which of the following is a major factor in management's ability to overvalue inventory without rapid detection by auditors?

• A)The limited volume of transactions in the inventory accounts.
• B)The auditor's assessment of inventory as a low-risk area.
• C)Complexity in the valuation of inventory.
• D)Consideration by the auditor of non-financial indicators of inventory fraud.

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Definitions:

Basic Types

Fundamental categories or classifications used to differentiate items, concepts, or entities based on common characteristics.

Prevalent

Describes something that is widespread, commonly occurring, or generally accepted within a given context or area.

Transactional Relationship

A business or interpersonal relationship focused primarily on economic transactions or exchanges of goods and services, often with a short-term perspective.