In Comparing Management Fraud with Employee Fraud, the Auditor's Risk

question 145

Multiple Choice

In comparing management fraud with employee fraud, the auditor's risk of failing to discover the fraud is

• A) greater for management fraud because managers are inherently more deceptive than employees.
• B) greater for management fraud because of management's ability to override existing internal controls.
• C) greater for employee fraud because of the higher crime rate among blue collar workers.
• D) greater for employee fraud because of the larger number of employees in the organization.

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Definitions:

Communication

The process of transmitting information, ideas, emotions, skills, and knowledge from one entity or individual to another.

Sound

Vibrations that travel through the air or another medium and can be heard when they reach a person's or animal's ear.

Channel

The medium through which a message is sent.

Noise

Unwanted or distracting sounds, but in communication theory, it also refers to any interference that distorts or hinders the transmission of a message.