Which of the Following Statements Is the Least Useful Means

question 25

Multiple Choice

Which of the following statements is the least useful means to detect revenue-related frauds?

• A) Comparing financial statement amounts with the assets they represent
• B) Comparing the financial statement performance between similar companies within the same industry
• C) Focusing on changes in financial statement revenue-related relationships
• D) Focusing on changes in recorded account balances from period to period

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Definitions:

Retained Earnings

The portion of a company's profits that are kept and not paid out as dividends to shareholders, often reinvested into the business.

Special Dividend

A one-time distribution of earnings to shareholders, outside of the regular dividend schedule.

Stock Repurchase

A decision by a company to buy back its own shares from the marketplace, potentially to increase the value of remaining shares.

Outstanding Shares

Outstanding shares refer to the total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.