IIA Internal Audit Practitioner IIA-IAP Question # 27 Topic 3 Discussion

IIA Internal Audit Practitioner IIA-IAP Question # 27 Topic 3 Discussion

IIA-IAP Exam Topic 3 Question 27 Discussion:
Question #: 27
Topic #: 3

Based on the three elements of the Fraud Triangle, which of the following might be considered a fraud indicator related to the opportunity element?


A.

Reserves were established based on conservative assumptions to maximize the amounts set aside for when operating results may not meet investors' expectations


B.

Executive management establishes financial performance objectives for business unit managers. The objectives include significant increases in annual sales and market penetration


C.

Poor segregation of duties allows for an executive assistant to authorize payments to one-time vendors without supervisory approvals


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