A false negative is:
A) When a detective control signals a possible fraud that upon investigation turns up a reasonable explanation.
B) When a detective control fails to signal possible fraud when one exists.
C) When a preventative control signals a possible fraud that upon investigation turns up a reasonable explanation..
D) When a preventative control fails to signal possible fraud when one exists..

Question

Quizplus · Accepted Answer

A false negative occurs when a control fails to signal possible fraud when one actually exists. Option B correctly defines false negative. Option A describes a situation where the detective control works correctly and Option C describes a situation where the preventative control signals a possible fraud, but it is later explained. Option D is the opposite of option B, where the preventative control fails to signal a possible fraud.

A False Negative Is