CFA Practice Question

There are 90 practice questions for this study session.

CFA Practice Question

Which of the following factors are related to opportunities?

I. The nature of a firm's operations involves significant related-party transactions. These parties are audited by another firm.
II. There are aggressive or unrealistic profitability expectations.
III. Management is dominated by a small group without compensation controls.
IV. There are high turnover rates of accounting and information technology personnel.
V. There is ineffective management monitoring as a result of ineffective oversight by the audit committee.
Correct Answer: I, III, IV and V

II is related to pressures.

User Contributed Comments 4

User Comment
jmcarr02 IV isn't a factor, it is a sign !
AusPhD no jmcarr02, high turnover of these personnel make it easier for others to manipulate the system.
judylyh why is I correct?
johntan1979 Read the notes
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