A.Participants attempt to recruit as many new members as possible.

B.Previous investors are paid with money from new members.

C.Participants believe that they are making a legitimate investment.

D.Promoters of Ponzi schemes engage in little or no valid commerce or investments.

A.Comparing register totals to the cash count

B.Confirming customers' outstanding account balances

C.Counting the physical inventory

D.Examining journal entries for accounts receivable write-offs

A.Classifying data into categories according to value and sensitivity levels

B.Changing locks and reprogramming door access codes every three to five years

C.Mandating that all employees sign noncompetition agreements

D.Requiring employees to take notes and keep drafts related to confidential projects

A.Expenses are recorded in the accounting system as soon as they are paid.

B.The accrual method focuses on tracking a company's current cash flow.

C.Revenues are generally recognized when services are rendered to a customer.

D.Accrual-basis accounting is simpler to use than cash-basis accounting.

A.Corruption

B.Asset misappropriations

C.Fraudulent statement

D.None of above