Fraud Risk Factors Are Examples of Factors That Increase the Risk

question 8

Multiple Choice

Fraud risk factors are examples of factors that increase the risk of fraud.Which of the following is an example of a management "incentives or pressures" risk factor?

• A)Customer demand for a new product line was significantly less than expected.
• B)Management and the auditors disagree on how to value a large contract in progress.
• C)There is only one board member who understands financial statements and she has suffered a heart attack.
• D)There has been significant turnover in the accounting department in the last year.