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Question 28
Which of the following is not one of the main factors that
contribute to fraudulent activity?
Opportunity.
Rationalization.
Incompatible duties.
Financial pressure.
Question 29
What is the rationale for the internal control principle,
segregation of duties?
The work of one employee should, without duplication of effort,
provide a reliable b asis for evaluating the work of another
employee.
History has shown that employees are generally dishonest and
thus cannot be entrusted with performing related duties.
Control is most effective when only one person is responsible
for a give task.
Segregation of duties causes companies to hire more employees
and thus it supports the economy.
Question 30