All of the following represent an increased opportunity for management to commit fraud except:
A)significant related party transactions.
B)the auditor's relationship with management is strained.
C)management is dominated by a single person.
D)the financial statements include highly subjective estimates.

Question

Quizplus · Accepted Answer

A strained relationship between the auditor and management would decrease the opportunity for management to commit fraud, as the auditor would be more likely to scrutinize their behavior. On the other hand, significant related party transactions, a dominant single person in management, and highly subjective estimates all increase the opportunity for fraud.

All of the Following Represent an Increased Opportunity for Management