Which of the following is not a management characteristic that increases pressure to commit fraudulent financial reporting?
A) close relationship with the current audit engagement partner and manager
B) pay for performance incentives based on short-term performance measures
C) high management and employee turnover
D) highly optimistic earnings projections

Question

Quizplus · Accepted Answer

A close relationship with the current audit engagement partner and manager is not typically a characteristic that increases pressure to commit fraudulent financial reporting. The other options can create pressures or incentives that might lead to fraudulent reporting.

Which of the Following Is Not a Management Characteristic That