In order for auditors to be able to recognize potential fraud, they must be aware of the basic characteristics of fraud. Which of the following is not a characteristic of fraud?
A)Intentional deception.
B)Taking unfair or dishonest advantage of other people.
C)Perpetration for the benefit or detriment of the organization.
D)Negligence on the part of executive management.

Question

Quizplus · Accepted Answer

Negligence on the part of executive management is not a characteristic of fraud. It may contribute to fraud, but it is not a necessary characteristic for fraud to occur. The other choices all relate to the core elements of fraud.

In Order for Auditors to Be Able to Recognize Potential