Which of the following is a risk factor related to opportunities and financial statement fraud?
A) ineffective communication of company values
B) promotions inconsistent with expectations
C) significant related-party transactions
D) adverse relationships between management and employees

Question

Quizplus · Accepted Answer

Significant related-party transactions create an opportunity for financial statement fraud as these transactions may be conducted at different prices or terms than those with unrelated parties, providing an avenue for manipulating financial statements. A, B, and D may be risk factors related to other types of fraud but are not specific to opportunities and financial statement fraud.

Which of the Following Is a Risk Factor Related to Opportunities