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In comparing management fraud with employee fraud, the auditor's risk of failing to discover the fraud is

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In comparing management fraud with employee fraud, the auditor's risk of failing to discover the fraud is

In comparing management fraud with employee fraud, the auditor's risk of failing to discover the fraud is

▸ greater for management fraud because managers are inherently more deceptive than employees.

▸ greater for management fraud because of management's ability to override existing internal controls.

▸ greater for employee fraud because of the higher crime rate among blue collar workers.

▸ greater for employee fraud because of the larger number of employees in the organization.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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Baradar Author

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Thanks

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Good timing, thanks!

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