Which of the Following Statements Regarding Fraud Is (Are) True

question 77

Multiple Choice

Which of the following statements regarding fraud is (are) true?

• A) Fraud is a deliberate act.
• B) Fraud can be deliberate or unintentional; the outcome of the act determines if fraud exists.
• C) A company with a strong code of ethics can eliminate fraud.
• D) A company with strong internal controls can eliminate fraud.
• E) The most common type of fraud is financial statement fraud.

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Definitions:

Acidic

Pertaining to substances that have a pH less than 7, and are capable of donating a proton or hydrogen ion in a chemical reaction.

Strong Acids

Acids that completely ionize in solution, yielding a high concentration of hydrogen ions (H+) and demonstrating a strong ability to donate protons.

Strong Acid

An acid that completely dissociates in water, releasing a high concentration of hydrogen ions and exhibiting a low pH.

Formic Acid

A colorless, pungent liquid with the formula HCOOH, used in various chemical manufacturing processes and as a preservative.