If a Supervisor Sets a Bad Example by Taking Office

question 22

Multiple Choice

If a supervisor sets a bad example by taking office supplies home for personal use,this affects which of the following factors that lead to fraud?

• A)Fraud incentive.
• B)Fraud opportunity.
• C)Fraud rationalization.
• D)Fraud detection.

---

Definitions:

Expected Costs

The anticipated expenses associated with the production of goods or services or the undertaking of an activity, based on historical data, trends, and analysis.

Economic Profit

The contrast between earnings from outputs sold and the opportunity cost of using specific inputs.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the outstanding loan.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of assets, expressed as an annual percentage of the principal.