Which of the Following Items Is NOT True, According to the Study

Which of the following items is NOT true, according to the study done by the Committee of Sponsoring Organizations (COSO) ?

A) Frauds were most commonly perpetrated by improper revenue recognition, overstating assets, and understating expenses.
B) The average financial statement fraud period extended over 5 years and the frequency of fraudulent acts was sporadic during the period.
C) Severe consequences were associated with companies who committed financial statement fraud (e.g., Chapter 11 bankruptcy, stock was delisted, lawsuits by stockholders or bondholders) .
D) Most companies were experiencing net losses or were just holding break-even positions in periods prior to the fraud. Meaning, many frauds were used to reverse downward spirals or to maintain upward trends.