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:

Inattentional Blindness

Inattentional blindness is the psychological phenomenon where an individual fails to perceive an unexpected stimulus in plain sight due to focusing attention on another task or aspect.

Dual Processing

The principle that information is often simultaneously processed on separate conscious and unconscious tracks in the human mind.

Synchronized Activity

Involves multiple components or individuals acting in unison and coordination, often seen in systems or group behaviors.

Bits Information

The smallest unit of data in computing, representing a single binary value of 0 or 1.