Gaining an understanding of management is crucial in identifying fraud exposures or opportunities for fraud. Which aspect of management should be investigated?
A) Management compensation plan
B) Management backgrounds
C) Management's ability to influence organizational decision making
D) All of above

Question

Quizplus · Accepted Answer

All aspects of management should be investigated in order to identify fraud exposures or opportunities for fraud. Management's compensation plan may incentivize fraudulent behavior, their backgrounds may reveal a history of unethical behavior, and their ability to influence organizational decision making can allow for fraudulent activities to go unnoticed or be covered up.

Gaining an Understanding of Management Is Crucial in Identifying Fraud