The Management of a Company Has a Unique Ability to Perpetrate

question 12

Multiple Choice

The management of a company has a unique ability to perpetrate fraud because

• A)management has authority to develop internal controls
• B)management has authority over employees
• C)internal controls do not guarantee that a fraud will not occur
• D)management often has the ability to override internal controls

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Definitions:

Convergent Validity

The degree to which two measures that theoretically should be related are actually related.

Discriminant Validity

The degree to which a concept or measurement is not associated with other concepts or measurements it's supposed to be unrelated to.

Predictive Validity

The extent to which a test, measurement, or tool can accurately forecast or predict a specific outcome.

Face Validity

Refers to the extent to which a test appears to measure what it is intended to measure, based purely on its surface characteristics.