Which of the following are examples of opportunities that increase the risk that a fraud may have been perpetrated?
A)Accounts that rely on estimates and judgment
B)A high volume of transactions close to year-end
C)Significant adjusting entries and reversals after year-end
D)A low turnover of staff with accounting responsibilities

Question

Quizplus · Accepted Answer

Accounts that rely on estimates and judgment, a high volume of transactions close to year-end, and significant adjusting entries and reversals after year-end are all opportunities that increase the risk of fraud. A low turnover of staff with accounting responsibilities is not necessarily an opportunity for fraud, as a stable and experienced accounting team may be better equipped to detect and prevent fraudulent activity.

Which of the Following Are Examples of Opportunities That Increase