The Committee of Sponsoring Organizations of the Treadway Committee (COSO) analyzed the financial reporting of public companies during the 1987-1997 periods when business failures due to accounting fraud were high and found that:
A)Top management was frequently involved in the fraud with the CEO being the person most frequently involved
B)Top management was frequently involved in the fraud with the CFO being the person most frequently involved
C)The audit committee always sanctioned the fraud
D)A minority of audit reports issued during the fraud period contained unqualified audit opinions

Question

Quizplus · Accepted Answer

Top management, particularly the CEO, was often found to be involved in accounting fraud during this period.