Which of the following is not a factor that relates to opportunities to commit fraudulent financial reporting?
A) lack of controls related to the calculation and approval of accounting estimates
B) ineffective oversight of financial reporting by the board of directors
C) management's set of ethical values
D) high turnover of accounting, internal audit, and information technology staff

Question

Quizplus · Accepted Answer

Lack of controls related to accounting estimates, ineffective oversight by the board of directors, and high turnover of accounting/internal audit/IT staff are all factors that can create opportunities for fraudulent financial reporting. However, management's set of ethical values is not directly related to the opportunities for fraud. While a lack of ethical values may contribute to a company's overall culture of fraud, it is not a specific factor that relates to opportunities for fraudulent financial reporting.

Which of the Following Is Not a Factor That Relates