CFA Practice Question

There are 90 practice questions for this study session.

CFA Practice Question

According to SAS 99, which of the following is least likely to be a risk factor related to incentives/pressures to commit fraudulent accounting?
A. Profitability is threatened by competition or market saturation, accompanied by declining margins.
B. The nature of the firm's industry involves the ability to dictate terms and conditions to suppliers and customers, which may result in transactions that are not at arms' length.
C. Personal net worth of management is threatened by the firm's poor financial performance.
Explanation: This factor is related to opportunities.

User Contributed Comments 1

User Comment
Tommy Both A and C are warning signs.
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