Answer: The fraud examiner would like to determine who is responsible for known losses occurring in a certain area.
Explanation:
A Fraud Examiner is an individual that resolves allegations regarding fraud, takes statements, gets evidences and also testifies to findings so that issues regarding fraud can be solved.
Based on the options given, the most favorable reaosn to conduct a covert examination would be so that the fraud examiner would like to determine who is responsible for known losses occurring in a certain area.
Answer:
<h3>b. The seller and buyer did not sign a formalized written contract.
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Explanation:
Revenue Recognition Principle lays down several rules for the existence of a contract. It states that probable sum of payment should not be counted as revenue until the contract is completely done.
It also states that the seller and buyer can terminate the contract without penalty if neither has performed any obligations in the contract. The contract can be cancelled if no payments have been made.
However, it is important to identify the contract by both the seller and buyer. They should sign a formalized written contract before any work is initiated.
