Red flags, symptoms of fraud, often go unnoticed or are not vigorously pursued because:
A) there is not supporting evidence of fraud.
B) the red flags are not associated with financial statement preparation.
C) there are many red flags in day-to-day operations that are not fraud indicators.
D) the audit committee is involved in other investigations.

Question

Quizplus · Accepted Answer

Red flags often go unnoticed or are not vigorously pursued because day-to-day operations naturally involve many anomalies or irregularities that are not indicators of fraud, making it challenging to distinguish between benign activities and genuine signs of fraudulent behavior.

Red Flags, Symptoms of Fraud, Often Go Unnoticed or Are