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.

---

Definitions:

Sales Discount

A reduction in the price of goods or services offered to customers, usually as an incentive for prompt payment.

Credit Sales

Credit sales are transactions where the customer purchases goods or services with the agreement to pay at a later date, typically invoiced by the seller.

Prompt Payment

The act of settling a financial obligation on or before its due date.

Sales Returns

Transactions involving the return of sold goods from the customer to the seller, often resulting in a refund or credit.