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Exam CFE topic 1 question 10 discussion

Actual exam question from ACFE's CFE
Question #: 10
Topic #: 1
[All CFE Questions]

People commit financial statement fraud to:

  • A. Conceal false business performances
  • B. Preserve personal status/control
  • C. Maintain personal income
  • D. Stand outside the accounting system
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Suggested Answer: B 🗳️

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rnk007
1 month, 1 week ago
Selected Answer: A
Financial statements are meant for both regulators and investors. Investors tend to believe Financial statements before they making a Judgement. So, Management would try to conceal business returns or operations by cooking them.
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