Which of the Following Factors Is, According to AICPA, an Example

question 70

Multiple Choice

Which of the following factors is, according to AICPA, an example of opportunities to commit fraud?

• A) There is excessive interest by management in maintaining the entity's trend of earnings.
• B) Internal controls are deficient, due to ineffective accounting and information systems.
• C) There is an increasing number of business failures in the company's industry.
• D) Management has personally guaranteed certain debts of the company.

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Definitions:

Times Interest Earned

A ratio that measures a company's ability to meet its interest payments on outstanding debt.