Which of the Following Statements Is Usually True

question 16

Multiple Choice

Which of the following statements is usually true?

• A) It is easier for the auditor to uncover fraud than errors.
• B) It is easier for the auditor to uncover indirect-effect illegal acts than fraud.
• C) The auditor's responsibility for detecting direct-effect illegal acts is similar to the responsibility to detect fraud.
• D) The auditor's responsibility for detecting indirect-effect illegal acts is similar to the responsibility to detect fraud.

---

Definitions:

Office Equipment

Assets like computers, desks, and chairs used in an office to carry out operations, not immediately consumed in the production process.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future.

Accounts Receivable

Amounts owed to a company by customers for goods or services provided on credit.