A consistent pattern of earnings growth would eliminate the auditor's concern for fraud in revenue recognition.

Question

Quizplus · Accepted Answer

A consistent pattern of earnings growth does not necessarily eliminate the risk of fraud in revenue recognition. Fraudulent activities can occur even if earnings are growing at a steady rate. Therefore, auditors cannot rely solely on consistent earnings growth as an indicator of no fraud in revenue recognition.

A Consistent Pattern of Earnings Growth Would Eliminate the Auditor's