Fraud by Malicious Insiders Often Involves Some Form of Collusion

question 55

True/False

Fraud by malicious insiders often involves some form of collusion, or cooperation, between an employee and an outsider.

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Definitions:

Ratification

The formal approval or confirmation of an act or agreement that was signed but not yet authorized.

Unauthorized Agent

An individual who acts on behalf of another without having the legal or official permission to do so.

Principal

The amount of money that is originally invested or loaned, prior to interest or profit.

Primarily Liable

Refers to the party in a financial transaction or contractual agreement who has the direct responsibility to perform or pay.