Which of the following is not a management characteristic that increases pressure to commit fraudulent financial reporting?
A)Close relationship with the current audit engagement partner and manager
B)Pay for performance incentives based on short-term performance measures
C)High management and employee turnover
D)Highly optimistic earnings projections

Question

Quizplus · Accepted Answer

A close relationship with the current audit engagement partner and manager is more related to the risk of auditor independence being compromised rather than a direct management characteristic that increases pressure to commit fraudulent financial reporting. The other options (B, C, D) are direct pressures or situations that might lead management to commit fraud.

Which of the Following Is Not a Management Characteristic That