Which of the Following Best Represents Actions That May Indicate

question 58

Multiple Choice

Which of the following best represents actions that may indicate fraud is pervasive throughout the company under audit?

• A)The company's management negotiates deals with vendors in such a manner as to pay lower prices.
• B)The company's management drives luxury vehicles and takes vacations to exotic places.
• C)The company's management takes an overly aggressive approach to revenue recognition.
• D)The company's management estimates bad debts using an aged accounts receivables ledger rather than as a percent of sales.

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Definitions:

Legitimate State End

A concept in political philosophy and law referring to the justified objectives or goals pursued by a government.

Fourth Amendment Rights

Constitutional rights protecting individuals against unreasonable searches and seizures by the government.

Criminal Activity

Actions that violate laws and are punishable by the state, including felonies and misdemeanors.

Police Officers

Law enforcement officials tasked with maintaining public order, preventing and detecting crimes, and enforcing laws.