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Author Question: In comparing management fraud with employee fraud, the auditor's risk of failing to discover the fraud is (Read 130 times)

tspaw0811

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on: Aug 21, 2022

Question 1

If there is collusion among management, the chance a normal audit would uncover such acts is
◦ very low.
◦ very high.
◦ zero.
◦ None of these.

Question 2

In comparing management fraud with employee fraud, the auditor's risk of failing to discover the fraud is
◦ greater for management fraud because managers are inherently more deceptive than employees.
◦ greater for management fraud because of management's ability to override existing internal controls.
◦ greater for employee fraud because of the higher crime rate among blue collar workers.
◦ greater for employee fraud because of the larger number of employees in the organization.
Auditing and Assurance Services ¦ Arens, Elder, Beasley, Hogan ¦ 17th Edition
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Marked as best answer by tspaw0811 on Aug 21, 2022

AarionnaH

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Reply #1 on: Aug 21, 2022
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tspaw0811

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Reply 2 on: Aug 21, 2022
Wow, this really help

patma1981

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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