What Is the Most Important Factor Affecting the Risk of Management

question 34

Multiple Choice

What is the most important factor affecting the risk of management fraud?

• A)Lack of integrity.
• B)Lack of internal controls
• C)Lack of board of director involvement in organization.
• D)Lack of audited financial statements.

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Definitions:

MC (Marginal Cost)

The additional cost incurred in producing one more unit of a good or service.

Downward-Sloping Demand

A representation of the relationship between price and quantity demanded, indicating that as price decreases, demand increases.

Reasonable Substitutes

Alternative products or services that can satisfactorily replace others, meeting the same needs or wants.