Which of the following statements about fraud or fraud detection is true?

Question

Quizplus · Accepted Answer

Management may modify or destroy evidence in order to hide fraudulent activities, making it difficult to detect fraudulent behavior. Therefore, it is important for auditors to remain vigilant and thorough in their auditing procedures to identify any potential fraud.

B is incorrect as fraudulent financial reporting, regardless of its materiality, is a serious issue that can harm an organization and its stakeholders.

C is incorrect as journal entries can provide valuable evidence in identifying fraudulent behavior.

D is incorrect as new technology can also lead to new forms of fraud, and it is up to auditors to keep up with technological advancements to effectively detect and prevent fraudulent activity.

Which of the Following Statements About Fraud or Fraud Detection