What Is the Greatest Benefit That Can Be Derived by Discussing

question 90

Multiple Choice

What is the greatest benefit that can be derived by discussing fraud factors with management of the client organization under audit?

• A)Greater credibility with the client organization and its management.
• B)The impression on the client that potential fraud is not being considered by an independent source.
• C)Further consideration of the risks,and discussion of how management can reduce the risks.
• D)Full disclosure of all fraud occurring during the year under audit in the company.

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Definitions:

Rate of Inflation

The percentage increase in the general price level of goods and services in an economy over a period of time.

Annual Earnings

The total amount of money earned by an individual or entity in one year, before deductions such as taxes.

Federal Minimum Wage

The lowest legal hourly wage that an employer can pay to workers, as mandated by the federal government.

Earns Less

Refers to individuals or entities receiving lower income or profits compared to others or over a previous period.