The Fraud Discussion May Include the Following Elements

question 9

Multiple Choice

The fraud discussion may include the following elements

• A)a discussion of management's involvement in supervising employees with access to cash or other assets susceptible to misappropriation
• B)a consideration of unusual or unexplained changes in the behavior or lifestyle of employees that have come to the attention of management
• C)a consideration of the types of evidence that might indicate the possibility of fraud
• D)a discussion of how an element of predictability will be built into the nature,timing,and extent of audit procedures
• E)a discussion of any allegations of fraud that have come to the attention of the auditor
• F)both A and B
• G)both B and C
• H)Both A and E

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Definitions:

Causal Variables

Factors that directly influence the outcome of a situation, where changes in these variables cause changes in other variables.

B2B Market

Business-to-Business market, where transactions are conducted between companies, rather than between companies and consumers.

Macro Variables

Broad variables that describe the overall context of an economy, such as GDP, unemployment rates, inflation, and interest rates.

Micro Variables

Small-scale factors that can affect a business or research outcome; often specific to a particular area or sector.