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