Which of the Following Is a Red Flag Associated with Fictitious

question 22

Multiple Choice

Which of the following is a red flag associated with fictitious revenues?

• A) An unusual decrease in gross margin
• B) An unusual decline in the number of days' purchases in accounts payable
• C)Several unusual and highly complex sales transactions recorded close to the period end
• D) Recurring losses while reporting increasing cash flows from operations

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Definitions:

Poisson Distribution

A numerical distribution detailing the probability of specific event counts happening over a determined timeframe or spatial range.

Negative Exponential Distribution

A probability distribution used to model the time between events in a Poisson process, representing the decay of quantities.

Average Arrival Rate

A metric used in queueing theory indicating the average number of entities (people, items, etc.) arriving at a system or service point per unit of time.

Average Service Rate

The average rate at which a service process can complete work or tasks, often measured over a specific period.