​Which of the Following Statements Is the Least Useful Means

question 47

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:

Equity Securities

are financial instruments representative of ownership interests in entities, such as common stocks, that provide a claim on a corporation's assets and earnings.

Investors

Individuals or institutions that allocate capital with the expectation of receiving financial returns.

Indirect Expenses

Costs that are not directly traceable to a specific product or operation, such as utilities or administrative salaries.

Secondary Equity Offering

The issuance of new stock for sale to the public by a company that has already undergone an initial public offering (IPO).