MENU
Financial statement fraud is committed by:
Suggested Answer: C
Get Premium CFE-Financial-Transactions-and-Fraud-Schemes Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
40 comments · newest first
CE
Celestine
11 months ago
I disagree, it’s usually just the top dogs pulling the strings.
ED
Edelmira
11 months ago
Mid and lower level employees can be involved, but not as often.
PA
Pamella
11 months ago
Wait, organized criminals too? That’s surprising!
HE
Hermila
12 months ago
I think it's mostly senior management.
SI
Silva
12 months ago
Definitely all of the above!
LE
Leslie
12 months ago
I have a vague memory of a case study where organized criminals were involved, but I thought it was mostly internal employees committing fraud.
AR
Arthur
1 year ago
I feel like I read that senior management is often the main culprit, but I can't recall if that excludes others.
NA
Nakita
1 year ago
I think we practiced a question similar to this, and it mentioned that fraud can be committed by anyone in the organization, so maybe it's D?
KE
Kenda
1 year ago
I remember discussing how financial statement fraud can involve different levels of employees, but I'm not sure if it's just senior management or everyone.
SK
Skye
1 year ago
I think the key here is to focus on who has the most power and ability to manipulate financial statements. That points to C - senior management as the answer.
HU
Hubert
1 year ago
I'm a little confused by this question. I know financial statement fraud is a serious issue, but I'm not sure if the answer is B - mid and lower level employees or C - senior management. I'll have to review my notes.
TO
Toshia
1 year ago
Hmm, I'm not sure about this one. I'll have to think it through carefully. Could it be D - all of the above?
CR
Cristy
1 year ago
This one seems pretty straightforward. I'm pretty confident that the answer is C - senior management.
DO
Domitila
1 year ago
Okay, let me see. Financial statement fraud is usually committed by those with the most access and authority, so I'm going to go with C - senior management.
IS
Isadora
1 year ago
Okay, let's think this through. The issue is with the Chat Rooms icon, so I'm guessing we need to start or restart a service related to chat or messaging. I'll carefully consider each option.
TA
Tanesha
1 year ago
This looks like a pretty straightforward capital budgeting problem. I'll need to calculate the net cash flow for each year and then find the expected net cash flow in the tenth year.
TE
Terina
1 year ago
This is a good test of my knowledge of auditor reporting requirements. I'll need to make sure I understand the specific communication that is required to be included, rather than other types of communications the auditor might have.
ST
Stephaine
1 year ago
Definitely D. Financial statement fraud is like a virus - it can infect anyone, from the janitor to the CEO. Gotta keep those books squeaky clean, am I right?
RU
Rutha
1 year ago
D) All of the above
SH
Sherron
1 year ago
C) Senior Management
PU
Pura
1 year ago
B) Mid and lower level employees
JA
Jacklyn
1 year ago
A) Organized criminals
IR
Ira
1 year ago
Haha, the only way I'd commit financial statement fraud is if I could get away with it and enjoy a nice tropical vacation on a private island. But in all seriousness, I think the answer is D. It's a problem that can come from all levels of an organization.
TE
Tequila
1 year ago
D. All of the above. It's a sad reality that financial statement fraud can come from anywhere - crooks, employees, and even the top brass. Gotta keep a close eye on it.
MO
Moon
1 year ago
D) All of the above
SA
Sanda
1 year ago
C) Senior Management
AS
Ashlyn
1 year ago
B) Mid and lower level employees
NI
Niesha
1 year ago
A) Organized criminals
RI
Ria
1 year ago
I'm going with C. Senior management is the most likely culprit when it comes to financial statement fraud. They have the power and the access to manipulate the numbers.
BE
Belen
1 year ago
It's true that all of the above could be involved in financial statement fraud, it really depends on the situation.
GL
Glen
1 year ago
I think it could also be mid and lower level employees, they may feel pressured to meet targets.
AL
Alease
1 year ago
I agree, senior management usually has the most opportunity to commit financial statement fraud.
WI
Willie
2 years ago
This one is tricky, but I think the correct answer is D. Financial statement fraud can be committed by all of the above - organized criminals, mid and lower-level employees, and senior management. It's a serious issue that affects companies of all sizes.
BE
Ben
1 year ago
Absolutely, transparency and accountability are key in preventing financial statement fraud.
CH
Chaya
1 year ago
Yes, that's why it's crucial for companies to regularly review their financial statements for any irregularities.
OS
Osvaldo
1 year ago
It's important for companies to have strong internal controls to prevent fraud.
WI
Wilda
1 year ago
I agree, financial statement fraud can be committed by anyone within the company.
SH
Shenika
2 years ago
I think it's important for companies to have strong internal controls to prevent fraud.
SU
Susana
2 years ago
I agree, but I believe senior management has more opportunity to commit fraud.
LA
Laurel
2 years ago
I think financial statement fraud can be committed by anyone.