The efficient market hypothesis does not have to imply that financial markets are efficient

Which of the following statements best describes the primary difference between an audit and forensic accounting?

a. An audit has the focused responsibility to detect fraud in the client organization, while forensic accounting sets out to prevent fraud. b. An audit has no responsibility for detecting fraud, while forensic accounting provides an audit specific to material fraud discovery. c. An audit must follow Generally Accepted Auditing Standards, while the forensic accountant is bound to Generally Accepted Fraud Standards. d. An audit utilizes sampling techniques to detect material misstatements, while forensic accounting examines the entire population of fraudulent transactions.

Mucho Tacos, Inc, sells franchises. Mucho Tacosimposes on its fran¬chi¬sees standards of operation and personnel training methods. What is the potential pitfall to Mucho Tacosif it exercises too much control over its fran¬chisees?