Which of the following is a true statement?

a. Lifestyle changes are often the easiest fraud symptoms to detect.

b. Lifestyle changes are helpful in detecting fraud on behalf of a corporation.

c. Fraud is indicated when an employee sells a large number of shares of stock he/she owns.
d. Evidence of an employee paying off large debt can be verified, but it is costly to do so.


a
FEEDBACK: a. Correct.
b. Incorrect, lifestyle changes do not usually occur when the fraud is on behalf of the corporation.
c. Incorrect, the person who commits fraud usually spends the money and does not invest it.
d. Incorrect, this action is not costly to verify.

Business

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