Which of the following is most likely to be considered a risk factor relating to fraudulent financial reporting?
A)Low turnover of senior management.
B)Extreme degree of competition within the industry.
C)Capital structure including various operating subsidiaries.
D)Sales goals in excess of any of the preceding three years.

Question

Quizplus · Accepted Answer

Extreme degree of competition within the industry can pressure companies to manipulate financial results to appear more competitive, increasing the risk of fraudulent financial reporting.

Which of the Following Is Most Likely to Be Considered