Which of the following factors is, according to AICPA, an example of opportunities to commit fraud?
A) There is excessive interest by management in maintaining the entity's trend of earnings.
B) Internal controls are deficient, due to ineffective accounting and information systems.
C) There is an increasing number of business failures in the company's industry.
D) Management has personally guaranteed certain debts of the company.

Question

Quizplus · Accepted Answer

Deficient internal controls, such as ineffective accounting and information systems, provide opportunities for individuals to commit fraud by exploiting weaknesses in the entity's control environment.

Which of the Following Factors Is, According to AICPA, an Example