ACFE CFE-Financial-Transactions-and-Fraud-Schemes Exam - Topic 1 Question 125 Discussion

Actual exam question for ACFE's CFE-Financial-Transactions-and-Fraud-Schemes exam

Question #: 125
Topic #: 1

[All CFE-Financial-Transactions-and-Fraud-Schemes Questions]

Which of the following is NOT the reason why senior management will overstate business statement?

AComply with debit covenants

BMeet personal performance criteria

CTrigger performance related compensation

DShow a pattern of growth to support sale of a business

Show Suggested Answer

Suggested Answer: A

by Rosamond at May 05, 2026, 06:31 PM

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Eleni

28 days ago

I practiced a similar question where overstating was linked to performance-related compensation, so I might lean towards B being a reason.

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Emelda

1 month ago

I think the answer is A because complying with debt covenants usually involves being more conservative, but I could be wrong.

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Lino

1 month ago

I remember discussing how senior management might overstate statements to meet personal performance criteria, but I'm not sure if that's the only reason.

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