Relative to Internal Controls,what Is a Primary Risk of Fraud

question 30

Multiple Choice

Relative to internal controls,what is a primary risk of fraud in the client company?

• A)The risk that management overrides controls.
• B)The risk that management changes controls each year.
• C)The risk that management carefully enforces and monitors controls.
• D)The risk that the audit committee monitors controls.

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Definitions:

Sherman Antitrust Act

A landmark federal statute in the United States that prohibits monopolistic business practices.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, transforming economies through the development of factories, railroads, and machinery, and shifting societies from agricultural to industrial.

Indian Reservations

Designated areas of land managed by Native American tribes under the U.S. Bureau of Indian Affairs, intended to maintain and preserve their cultures and ways of life.