Chapter 8, Problem 1MC

Which of the following would a fraudster perceive as a pressure?

A. lack of management oversight

B. everyone does it

C. living beyond one’s means

D. lack of an internal audit function

To determine

Concept introduction:

Internal control:

Internal controls are policies and procedures implemented by an organization to attain operational goals and maintain the integrity of accounting. Internal control system has its five integral components those together works an effective internal control.

To choose:

The situation that would be a fraudster perceive as a pressure

Answer to Problem 1MC

Living beyond one’s means

Explanation of Solution

Explanation for correct answer:

Living beyond one’s meanswould be a fraudster perceive as a pressure. Hence the correct option is C.

Explanation for incorrect answers:

A. Living beyond one’s meanswould be fraudsters perceive as a pressure. Hence this option is incorrect.

B. Living beyond one’s meanswould be fraudsters perceive as a pressure. Hence this option is incorrect.

D. Living beyond one’s meanswould be fraudsters perceive as a pressure. Hence this option is incorrect.