According to a Survey of Auditors,the Top Three Warning Signs

question 5

Multiple Choice

According to a survey of auditors,the top three warning signs of fraud include all but which of the following?

• A)Prior years' experience with management indicates a degree of dishonesty.
• B)Management places inordinate amount of importance on meeting earnings projections.
• C)Managers lied to the auditors or have been overly evasive in response to auditor inquiries.
• D)The auditee is a small company relatively few control activities.

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Definitions:

Government Expenditures

The total amount spent by the government on goods, services, and public projects.

Net Taxes

The difference between total taxes paid and government transfers received, representing the actual tax burden on an individual or business.

Shifted

Refers to a change in position or direction, often used in economics to describe movements in supply or demand curves.

Sales Tax

A tax imposed on sales of goods and services, typically calculated as a percentage of the purchase price and collected by the retailer.