Which of the Following Is Not a Factor That Relates

question 139

Multiple Choice

Which of the following is not a factor that relates to opportunities to commit fraudulent financial reporting?

• A) lack of controls related to the calculation and approval of accounting estimates
• B) ineffective oversight of financial reporting by the board of directors
• C) management's set of ethical values
• D) high turnover of accounting, internal audit, and information technology staff

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Definitions:

GAAP

A body of accounting and financial reporting standards and rules widely adopted, defined as Generally Accepted Accounting Principles.

Revenue Recognition

The accounting principle that revenue should be reported at the time goods are sold or services are rendered, regardless of when the payment is received.

Expense Recognition

The accounting principle that matches incurred expenses to the revenue they generate, recognizing expenses in the same period as the related revenues.

Revenue Recognition Principle

The accounting principle that revenue should be recorded when earned, regardless of when payment is received.