Fraud Risk Factors Are Examples of Factors That Increase the Risk

question 31

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 "opportunities" risk factor?

• A)The company has lost a major account and income is falling.
• B)Two major competitors have gone bankrupt as margins decline in the industry.
• C)The Chief Executive Officer owns forty percent of the outstanding share capital.
• D)New accounting standards provide three different methods for valuing financial instruments.

---

Definitions:

Paraphrase

The act of rewording or rephrasing a text or passage to achieve clearer understanding, often to simplify or clarify the original message.

Secondary Source

Information that was created later by someone who did not experience first-hand or participate in the events or conditions being researched.

Paraphrasing

The act of rewording or rephrasing text or speech to clarify its meaning or to present it in a different manner, while retaining the original message.

Secondary Source

Information that has been interpreted, analyzed, or summarized from primary sources, often used in research.