Question

Which of the following is a finding of the Treadway Commission?

1) Financial statement frauds occur very often, the average fraud lasts about two years.
2) The CEO perpetrates the fraud in 72
3) While financial statement frauds occur infrequently, they are extremely costly.
4) Financial statement fraud occurs mostly in companies that are listed.

Answer 1

The Treadway Commission found that financial statement frauds occur infrequently but are extremely costly.

Step-by-step explanation:

The finding of the Treadway Commission is that financial statement frauds occur infrequently, but they are extremely costly. This means that while financial statement frauds may not happen regularly, when they do occur, they can have significant financial consequences for the company involved.