Which of the following is not a factor that relates to opportunities to misappropriate assets?
A)Inadequate internal controls over assets
B)Presence of large amounts of cash on hand
C)Inappropriate segregation of duties or independent checks on performance
D)Adverse relationships between management and employees

Question

Quizplus · Accepted Answer

Adverse relationships between management and employees are not directly related to opportunities to misappropriate assets, although they can contribute to a negative work environment that may increase the risk of fraud. The other choices are all factors that can create opportunities for asset misappropriation. Inadequate internal controls can allow employees to steal or misuse assets without detection, while large amounts of cash on hand make it easier for employees to steal or manipulate cash. Inappropriate segregation of duties or independent checks can allow one employee to commit fraud without detection by another, and can also create opportunities for collusion between employees.

Which of the Following Is Not a Factor That Relates