Regarding related-party transactions, fraud occurs when:
A) The transactions are not properly disclosed.
B) Assets are transferred between related parties.
C) Business deals or arrangements are made between two parties that create a conflict of interest in a business setting.
D) all of the above

Question

Quizplus · Accepted Answer

A: Correct; related-party transactions must be disclosed.
B: Incorrect; this is acceptable, as long as the related-party transaction is disclosed.
C: Incorrect; this is acceptable, as long as the related-party transaction is disclosed.
D: Incorrect

Regarding Related-Party Transactions, Fraud Occurs When