Explain Why Collusion Between Employees and Management in the Commission

question 111

Essay

Explain why collusion between employees and management in the commission of a fraud is difficult to both prevent and detect.

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Definitions:

Product Cost

The total cost associated with manufacturing a product, including direct materials, direct labor, and manufacturing overhead.

Direct Materials

The raw materials that can be directly traced to the manufacturing process of a product.

Indirect

Costs or actions that are not directly traceable to a specific product, service, or activity but are necessary for the business to operate.

Direct

Expenses or costs that can be directly traced to a specific cost object, like a product, department, or project.