The circular flow model of economics shows how money moves through an economy in a constant loop from producers to consumers and back again, factoring into a nation’s GDP.

The circular flow of cash fraud model often relies on an auditor’s acceptance of inadequate audit evidence and explanations provided by management. Fraudsters will often play to these weaknesses by ...

Learn the meaning of the terms "money flow" and "real flow." Find out how they relate to each other in the circular flow of income economic model.