Question

Which of the following factors is least likely to represent an opportunity to commit fraud?

A) The audit committee is ineffective.
B) Poor internal controls over cash transactions.
C) The existence of highly complex transactions.
D) Operating losses make a hostile takeover imminent.

Answer 1

Operating losses make a hostile takeover imminent is least likely to represent an opportunity to commit fraud.

Step-by-step explanation:

The factor least likely to represent an opportunity to commit fraud is D) Operating losses make a hostile takeover imminent. This is because operating losses make a company less attractive for a takeover, reducing the motivation for fraud. On the other hand, A) The audit committee is ineffective, B) Poor internal controls over cash transactions, and C) The existence of highly complex transactions can all provide opportunities for fraud. These factors create weaknesses in oversight, allowing individuals to manipulate and exploit the system for personal gain.