Audits, Public Record Searches, and Net Worth Calculations Are Used

question 44

Multiple Choice

Audits, public record searches, and net worth calculations are used to gather what type of evidence in fraud investigation?

• A) Testimonial
• B) Forensic
• C) Documentary
• D) Observational

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Definitions:

Income Tax Effects

The impact of tax policies and rates on the income of individuals and businesses, affecting net income and financial planning.

Statement of Retained Earnings

A financial statement that outlines the changes in retained earnings for a specific period, including net income earned or loss and dividends paid.

Stockholders' Equity

Stockholders' Equity is the residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of shareholders.

Paid-in Capital

The total amount of money that shareholders have invested in a company through the purchase of its stock, not including the stock's par or face value.