MoniMarcelloni's Team Has Been Asked to Tackle Three Ongoing Frauds

question 12

Multiple Choice

MoniMarcelloni's team has been asked to tackle three ongoing frauds and her partner has asked her to follow up only on the financial reporting fraud. Which of the following items will she be pursuing?

• A) theft of stock by employees or customers
• B) employees remaining on the payroll after ceasing employment
• C) recording fictitious sales
• D) unauthorized refunds to customers

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Definitions:

Agency Costs

Expenses related to resolving conflicts of interest between company managers and shareholders.

Employee Empowerment

The delegation of greater decision rights to members of the organization.

Decision Rights

The rights or authority to make decisions within an organization, often delineated by roles or levels within the organizational structure.

Transactions Costs

Expenses incurred when buying or selling goods or services, including search, bargaining, and enforcement costs.