Information Systems Are Used to Protect Companies Against Fraud

question 3

Multiple Choice

Information systems are used to protect companies against fraud. Which of the following is not one of the fraud risk factors identified in your textbook?

• A) A high level of trust in employees without sufficient oversight to verify that they are not stealing from the company
• B) Relying on informal processes of control
• C) A mindset belief) that internal controls and fraud prevention systems are too expensive to implement
• D) Assigning a narrow range of duties to employees limiting their opportunities to commit fraud

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Definitions:

Exchange Rate

The price at which one currency can be exchanged for another currency in the foreign exchange market.

Loss

A financial condition where expenses exceed income, leading to a negative net income.

Euros

The official currency of the Eurozone, used by 19 of the 27 European Union countries.

Controlling Influence

The power or authority one entity has over another, typically in the context of a parent company's significant influence over the operations and decision-making of its subsidiary.