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QUESTION

For each of the following red flags, identify which fraud exposure the risk falls under:

For each of the following red flags, identify which fraud exposure the risk falls under: (1) management and directors, (2) relationships with others, (3) organization and industry, or (4) financial results and operating characteristics.______a. The personal worth of directors is tied up in the organization______b. The company has a complex organizational structure.______c. The audit committee rarely holds a meeting.______d. The company recently switched to a new law firm.______e. Although sales appear to be increasing, the cost of goods sold and inventory levels remain constant.______f. The company is about to go through a debt offering.______g. A background check indicates that the new controller has been fired from five previous jobs.

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