A red flag that may alert the auditor to fraud in the revenue cycle is a trend of revenue growth that is consistent with industry results.

Question

Quizplus · Accepted Answer

A trend of revenue growth that is consistent with industry results is generally not considered a red flag for fraud, as it indicates the company is performing in line with its peers. Red flags for fraud in the revenue cycle typically involve inconsistencies or anomalies that deviate from normal industry patterns.

A Red Flag That May Alert the Auditor to Fraud