12-Fraud is more prevalent in smaller businesses and not-for-organizations because it is more difficult for them to maintain: *

Adequate supervisory boards

Adequate financial reporting standards

Adequate compensation

Adequate separation of duties

13-To determine the sample size for a test of controls, an auditor should consider the tolerable deviation rate, the desired confidence level, and the *

Risk of assessing control risk too high

Computed upper precision limit

Expected population deviation rate

Risk of incorrect rejection

14-Who is most likely to perpetrate fraudulent financial reporting? *

The internal auditors

Production employees

Management of the company

Members of the board of directors

15-A measure of the risk that audit evidence for a segment will fail to detect misstatements exceeding a tolerable amount, should such misstatements exist. *

Business risk

Preliminary judgment about materiality

Inherent risk

Planned detection risk