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    Of Employees in The Organization,: 23. If There Is Fraud Involving Top Management, The Probability

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    accounts 3 life
    Management fraud poses a greater risk of not being discovered than employee fraud because managers have greater ability to override controls and conceal fraud. If top management is involved in fraud, it is unlikely that the fraud would be uncovered in a financial statement audit. Errors refer to unintentional misrepresentations and examples include suppressing or omitting the effects of transactions from records.

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    Of Employees in The Organization,: 23. If There Is Fraud Involving Top Management, The Probability

    Uploaded by

    accounts 3 life
    1K views2 pages
    Management fraud poses a greater risk of not being discovered than employee fraud because managers have greater ability to override controls and conceal fraud. If top management is involved in fraud, it is unlikely that the fraud would be uncovered in a financial statement audit. Errors refer to unintentional misrepresentations and examples include suppressing or omitting the effects of transactions from records.

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    Management fraud poses a greater risk of not being discovered than employee fraud because managers have greater ability to override controls and conceal fraud. If top management is involved in fraud, it is unlikely that the fraud would be uncovered in a financial statement audit. Errors refer to unintentional misrepresentations and examples include suppressing or omitting the effects of transactions from records.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views2 pages

    Of Employees in The Organization,: 23. If There Is Fraud Involving Top Management, The Probability

    Uploaded by

    accounts 3 life
    Management fraud poses a greater risk of not being discovered than employee fraud because managers have greater ability to override controls and conceal fraud. If top management is involved in fraud, it is unlikely that the fraud would be uncovered in a financial statement audit. Errors refer to unintentional misrepresentations and examples include suppressing or omitting the effects of transactions from records.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    be fraud, the

    22. In comparing management fraud with employee fraud. auditor's risk of failing to discover the
    fraud is
    Greater for management fraud because managers inherently smarter than employees Greater
    for management fraud because of managemen ability to override existing internal controls
    Greater for employee fraud because of the higher crim
    rate among blue collar workers d. Greater for employee fraud because of the larger number
    of employees in the organization,
    b.

    23. If there is fraud involving top management, the probability


    that the fraud would be uncovered in a financial statement
    audit is
    b.
    c. d.
    Zero Unlikely Likely Very high
    24. The term "error” refers to unintentional misrepresentation of financial information.
    Examples of errors are when
    I. Assets have been misappropriated II. Transactions without substance have
    been recorded III. Records and documents have been manipulated and
    falsified IV. The effects of the transactions have been omitted
    from the records
    a. b.
    all of the above statements are true only statements I and III are true all of the above
    statements are false only statements II and IV are true
    d.
    b.
    Suppe
    25. Which of the following is an example of an error? a. Defalcation
    Suppression or omission of the effects of transactions from the records or
    documents. Recording of transactions without substance. Misapplication of
    accounting policies.
    90

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