When Testing for Fraudulent Hours or Fraudulent Expense Reports

Multiple Choice

When testing for fraudulent hours or fraudulent expense reports

A) it is easy for the auditor to discover fraudulent hours because of the abundance of available evidence.
B) it is difficult to prevent fraud in these two areas with adequate internal controls.
C) management falsification of expense reports can be an indicator of disregard for internal controls and the potential for fraud in other areas.
D) examining payroll records for approval is an important substantive test of transactions to uncover fraudulent hours.