All of the Following Are Indicators of Financial Statement Fraud

question 38

Multiple Choice

All of the following are indicators of financial statement fraud EXCEPT:

• A)Companies with unrealistically large growth in assets, revenues or profits.
• B)Companies with a principal who has been involved in a bankruptcy.
• C)Companies whose success depends on a special tax loophole or tax avoidance scheme.
• D)Companies that report contingent liabilities that have the potential to create a loss.

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Definitions:

Business Event

An occurrence or activity organized by a company or organization, usually with a specific purpose related to its operations, networking, or marketing.

ERP

Enterprise Resource Planning, a type of software used by organizations to manage and integrate important parts of their businesses.

Functional Areas

distinct departments or groups within an organization, each focusing on a specific aspect of the organization's operations, such as marketing, finance, or HR.

Information Flow

Information Flow is the movement or exchange of data within a network or system, illustrating how information is shared or transmitted from one part of a system to another.