Which of the Following Is an Analytical Symptom Associated with Revenue-Related

question 18

Multiple Choice

Which of the following is an analytical symptom associated with revenue-related financial statement frauds?

• A) Untrue responses by management to queries about revenue-related accounts
• B) Missing documents in the revenue cycle
• C) Unusual entries made at the end of the accounting period that increase revenues
• D) Significant bonuses tied to meeting earnings forecasts

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Definitions:

Common Stock

A form of corporate equity ownership, representing a share in the ownership of a company and a claim on a part of its profits.

Treasury Bills

Treasury bills are short-term government securities issued at a discount from the face value and mature at par, used by governments to raise funds to meet short-term financial needs.

Unsystematic Risk

The risk that is unique to a specific company or industry, which can be mitigated through diversification.