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ACFE CFE Exam - Topic 3 Question 89 Discussion

Which of the following is NOT the reason why senior management will overstate business statement?
A) Comply with debit covenants
B) Meet personal performance criteria
C) Trigger performance related compensation
D) Show a pattern of growth to support sale of a business

ACFE CFE Exam - Topic 3 Question 89 Discussion

Actual exam question for ACFE's CFE exam
Question #: 89
Topic #: 3
[All CFE Questions]

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

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Suggested Answer: A

by Amie at Apr 03, 2026, 04:55 AM

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Lashaunda
2 months ago
I feel like B is the right choice. Personal criteria shouldn't matter.
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Evan
2 months ago
I disagree, I believe it's D. They want to show growth.
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Letha
2 months ago
I think the answer is A. It's not about compliance.
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Owen
2 months ago
D makes sense for showing growth, but A? Nah.
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Katheryn
2 months ago
B and C are definitely reasons too.
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King
2 months ago
Wait, are we sure about that? Seems off.
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Tresa
4 months ago
Totally agree, that one doesn't fit!
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Fatima
4 months ago
A) Comply with debit covenants is the right answer.
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Makeda
5 months ago
I remember discussing how performance-related compensation can drive overstating, so I think C might not be the answer. But I’m not completely confident.
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Geoffrey
5 months ago
I'm a bit confused here. I thought all these options could lead to overstating, but maybe B is the least likely?
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Lashaunda
5 months ago
I feel like this question is similar to one we practiced on financial manipulation. I want to say D could be the right choice since it seems more about perception than actual performance.
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Honey
5 months ago
I think the answer might be A, but I'm not entirely sure. I remember something about debt covenants being more about compliance than overstating.
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