The Primary Responsibility for Fraud Prevention and Detection Rests with

question 113

Multiple Choice

The primary responsibility for fraud prevention and detection rests with

• A)the law enforcement authorities
• B)the auditor
• C)the management of the company
• D)the legal counsel of the company

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Definitions:

Single Entry Accounting

A method of bookkeeping that records only one side of each financial transaction, typically sufficient for smaller, simpler businesses.

Gross Profit

The difference between sales revenue and the cost of goods sold before accounting for other expenses.

Markup

The amount added to the cost of goods to cover overhead and profit, usually expressed as a percentage of the cost.

Discontinued Inventory

Discontinued inventory includes products that are no longer being produced or sold by a company, often due to obsolescence or strategy shifts.