Which of the Following Risks of Fraud Should Ordinarily Be

question 80

Multiple Choice

Which of the following risks of fraud should ordinarily be presumed on a financial statement audit by the audit team?

• A)Chief financial officer misappropriation of funds.
• B)Misapplication of revenue recognition principles.
• C)Management's inappropriate use of reserves.
• D)Lack of expenses related to stock options.

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Definitions:

Significance Level

The threshold at which the results of a statistical test are considered to be statistically significant.

Population Mean

The average value of all observations or measurements in a given population.

Random Sample

A subset of a population selected in a manner that ensures each member has an equal chance of being chosen.

News Narrative

The way news stories are structured and presented to convey a particular perspective or theme.