A key control environment factor in reducing the risk of fraudulent financial reporting through the overstatement of sales and accounts receivable is:
A) management's adoption and adherence to high standards of integrity and ethical values.
B) reducing the emphasis on sales targets.
C) establishing an effective audit committee.
D) all of the above.

Question

Quizplus · Accepted Answer

All the options listed contribute to reducing the risk of fraudulent financial reporting. Management's integrity sets the tone at the top, reducing emphasis on sales targets can decrease pressure to commit fraud, and an effective audit committee provides oversight and governance.

A Key Control Environment Factor in Reducing the Risk of Fraudulent