One Characteristic of Employee Fraud Is That the Fraud

question 15

Multiple Choice

One characteristic of employee fraud is that the fraud

• A)is perpetrated at a level to which internal controls do not apply
• B)involves misstating financial statements
• C)involves the direct conversion of cash or other assets to the employee's personal benefit
• D)involves misappropriating assets in a series of complex transactions involving third parties

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Definitions:

Entertainment Expenses

Costs for business-related entertainment that may be partially deductible under certain conditions.

Listed Property

Assets required to be reported for tax purposes because they have the potential for personal use, such as cars, computers, and real property.

Standard Mileage Rate

The IRS-set rate per mile that taxpayers can use to calculate deductions for business, charitable, medical, or moving purposes when using a vehicle.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life to account for the decline in value over time.