Lifestyle changes are usually not factors in detecting
A) investment scams.
B) kickback schemes.
C) bankruptcy fraud.
D) financial statement fraud.

Question

Quizplus · Accepted Answer

D: Investment scam perpetrators, embezzling employees, and people who hide assets in bankruptcies are all stealing assets. They tend to turn around and convert their assets and therefore show changes in lifestyle. In financial statement fraud, however, the perpetrators are usually trying to meet analyst expectations, loan covenants, or preserve their employment-not steal assets from their company. Furthermore, many of the perpetrators are highly-paid executives who already live lavishly.

Lifestyle Changes Are Usually Not Factors in Detecting