Red flags of financial statement fraud include all but which of the following
A) Companies with unrealistically large growth in assets, revenues or profits
B) Companies with a principal who has been involved in a bankruptcy
C) Companies whose success depends on a special tax loophole or tax avoidance scheme
D) Companies that report contingent liabilities that are reasonably possible and have the potential to create a loss for the company

Question

Quizplus · Accepted Answer

Correct since the typical company that is committing fraud won't want to report these liabilities.

Red Flags of Financial Statement Fraud Include All but Which