Explanation Explanation for correct answer: b. Poor internal controls provide an opportunity to commit fraud. For example, in case a person in charge of receipt of cash is also responsible of depositing as well as recording it in the books, then that person has an opportunity to steal the cash. Therefore, option b is correct. Explanation for incorrect answers: a. In case management demands financial success from its subordinates, then it creates pressure rather than providing an opportunity to commit fraud...

10th Edition

ISBN: 9780357195079

Author: JOHNSTONE

Publisher: CENGAGE C

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Concept explainers

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.

Question

Chapter 2, Problem 15MCQ

To determine

Introduction:Opportunity is referred as situations that increases the opportunity for a perpetrator to commit fraud and reduces the risk of getting caught. Weakness in internal controls and complex transactions are the basic factors which increases the opportunity to commit fraud.

To identify:The option that represent an opportunity to commit fraud.

Expert Solution & Answer

Chapter 2 Solutions

ACP AUDITING - RISK BASED APPROACH

Ch. 2 - The Great Salad Oil Swindle of 1963 is an asset...Ch. 2 - Prob. 2TFQ Ch. 2 - The three elements of the fraud triangle include...Ch. 2 - Prob. 4TFQ Ch. 2 - Prob. 5TFQ Ch. 2 - Prob. 6TFQ Ch. 2 - Prob. 7TFQ Ch. 2 - Prob. 8TFQ Ch. 2 - Prob. 9TFQ Ch. 2 - Prob. 10TFQ

Ch. 2 - Prob. 11TFQ Ch. 2 - Prob. 12TFQ Ch. 2 - Prob. 13MCQ Ch. 2 - Prob. 14MCQ Ch. 2 - Prob. 15MCQ Ch. 2 - Prob. 16MCQ Ch. 2 - Prob. 17MCQ Ch. 2 - Prob. 18MCQ Ch. 2 - Prob. 19MCQ Ch. 2 - Prob. 20MCQ Ch. 2 - Prob. 21MCQ Ch. 2 - Prob. 22MCQ Ch. 2 - Prob. 23MCQ Ch. 2 - Prob. 24MCQ Ch. 2 - Prob. 25RSCQ Ch. 2 - Prob. 26RSCQ Ch. 2 - Prob. 27RSCQ Ch. 2 - Refer to Exhibit 2.1 a. What is a Ponzi scheme? b....Ch. 2 - Prob. 29RSCQ Ch. 2 - Prob. 30RSCQ Ch. 2 - Prob. 31RSCQ Ch. 2 - Prob. 32RSCQ Ch. 2 - Prob. 33RSCQ Ch. 2 - Prob. 34RSCQ Ch. 2 - Prob. 35RSCQ Ch. 2 - Prob. 36RSCQ Ch. 2 - Prob. 37RSCQ Ch. 2 - Prob. 38RSCQ Ch. 2 - Many consider the Enron fraud to be one of the...Ch. 2 - Prob. 40RSCQ Ch. 2 - Prob. 41RSCQ Ch. 2 - Refer to Exhibit 2.5 and answer the following...Ch. 2 - Prob. 43RSCQ Ch. 2 - Prob. 44RSCQ Ch. 2 - Prob. 45RSCQ Ch. 2 - Prob. 46RSCQ Ch. 2 - Prob. 47RSCQ Ch. 2 - Prob. 48RSCQ Ch. 2 - Prob. 49RSCQ Ch. 2 - Prob. 50FF Ch. 2 - Prob. 51FF Ch. 2 - Prob. 52FF

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