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 opportunities to commit fraudulent accounting?
A. The nature of the firm's industry involves highly complex transactions, especially those close to the period end, which pose difficult "substance over form" issues.
B. It's difficult to determine who is in control due to a complex organizational structure.
C. Significant declines in customer demand and increasing business failures in either the industry or overall economy exist.
Explanation: This factor is related to pressures.

User Contributed Comments 3

User Comment
jgraham6 Fraud Triangle = Opportunity + Incentive/Pressure +Rationalization
1INHTJR But the question say least likely....not most likely
tferik The question asks about opportunities to commit fraud. C is related to pressure to commit.
You need to log in first to add your comment.