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 auditor-management relationship actually decreases the opportunity for management to commit fraud, as the auditor may be more cautious and skeptical in their audit procedures. A, C, and D represent factors that increase the opportunity for management to commit fraud.

All of the Following Represent an Increased Opportunity for Management