According to a survey of auditors,the top three warning signs of fraud include all but which of the following?
A)Prior years' experience with management indicates a degree of dishonesty.
B)Management places inordinate amount of importance on meeting earnings projections.
C)Managers lied to the auditors or have been overly evasive in response to auditor inquiries.
D)The auditee is a small company relatively few control activities.

Question

Quizplus · Accepted Answer

The other three options are all warning signs of fraud according to auditors, but the fact that the auditee is a small company with relatively few control activities is not necessarily a warning sign of fraud. While it may make it easier for fraud to occur, it does not necessarily mean fraud is occurring.

According to a Survey of Auditors,the Top Three Warning Signs