Risk of intentional manipulation of financial statements


Which of the following characteristics most likely would heighten an auditor's concern about the risk of intentional manipulation of financial statements?

A. Turnover of senior accounting personnel is low.

B. Insiders recently purchased additional shares of the entity's stock.

C. Management places substantial emphasis on meeting earnings projections.

D. The rate of change in the entity's industry is slow.

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Accounting Basics: Risk of intentional manipulation of financial statements
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