Question

_____ are relationships in financial or nonfinancial data that do not make sense, such as an unreasonable change in a volume, mix, or price. a. Analytical anomalies b. Accounting anomalies c. Auditing anomalies d. Control weaknesses

Answer 1

Answer:

A) Analytical anomalies

Explanation:

When forensic auditors search for signals of fraud, they will look for "red flags" that include:

1. Accounting anomalies
2. Internal control weaknesses
3. Analytical anomalies
4. Operational anomalies
5. Behavioral anomalies

This red flags are unusual circumstances that are not consistent with normal accounting activities.  

Analytical anomalies are transactions regarding people, events, relationships or procedures that do not make any sense from the business's point of view, e.g. excessive number of checking accounts or banks used, unexpected declines in cash balances, etc.