Which of the Following Statements Is True Concerning the Fraud

question 62

Multiple Choice

Which of the following statements is true concerning the fraud risk model?

• A)Assessing incentive is the first phase of the model.
• B)The fraud risk model should be reviewed with the audit team.
• C)The fraud risk model should be modified based on a review of internal controls.
• D)Auditors do not use a fraud risk model.

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Definitions:

Logistic Regression

A statistical analysis method used for predicting the outcome of a categorical dependent variable based on one or more predictor variables.

Meta-Analysis

A statistical technique that combines the results of multiple scientific studies to arrive at a comprehensive conclusion.

Data Analysis

The process of inspecting, cleaning, transforming, and modeling data to discover useful information, inform conclusions, and support decision-making.

Trends

Patterns or directions identified over periods of time in data sets or within a series of data points.