Financial statement fraud is always discovered through missing documents.

Question

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Financial statement fraud can be discovered through a variety of methods, including but not limited to missing documents. Other red flags may include inconsistencies or errors in financial data, unusual transactions or patterns, unexplained changes in account balances or other financial metrics, and discrepancies between reported results and external indicators such as market conditions or industry benchmarks. Effective fraud detection and prevention programs typically involve a combination of internal controls, data analysis, and employee training to identify and mitigate fraud risks.

Financial Statement Fraud Is Always Discovered Through Missing Documents