Which of the following does not represent an opportunity to commit fraud?
A) Significant related-party transactions.
B) The auditor's relationship with management is strained.
C) Management is dominated by a single person.
D) The financial report included highly subjective estimates.

Question

Quizplus · Accepted Answer

The auditor's strained relationship with management is not an opportunity for fraud; it is more of a risk factor for detecting fraud. Opportunities for fraud typically involve situations where controls are weak or oversight is lacking, such as related-party transactions, dominant management, or subjective estimates.

Which of the Following Does Not Represent an Opportunity to Commit