When Assessing the Risk of Fraud,an Auditor Can Consider

question 27

Multiple Choice

When assessing the risk of fraud,an auditor can consider:

• A)Attitudes and rationalisation to justify a fraud.
• B)Opportunities to perpetuate a fraud.
• C)Incentives and pressures to commit fraud.
• D)All of the above.

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Definitions:

Research and Development

Activities undertaken by a business to innovate and introduce new products or services, often entailing technical research and design.

Earnings Targets

Earnings Targets are specific financial goals set by a company, often related to earnings per share or net income, that it aims to achieve within a given timeframe.

Incentive Compensation Plans

Programs designed by employers to reward employees for achieving specific business goals, enhancing productivity and motivation.

Compensation Committee

A subgroup of a company's board of directors responsible for determining executive compensation packages and policies.