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:

Period Cost

Period costs are expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as administrative and selling expenses.

VP of Sales

A top executive responsible for leading the sales department, developing sales strategies, and driving revenue growth for an organization.

Overhead Allocated

The portion of indirect costs assigned to a specific project or production process, often based on predetermined rates or actual expenses.

Period Costs

Expenses that are not directly tied to the production of goods and are expensed in the period they are incurred.