AAA – Nov 2012 – L3 – SA – Q12 – Forensic Auditing

Identifying examples unrelated to revenue-related fraud.

Question

Which of the following is NOT an example of Revenue Related Fraud?

A. Accounting and documentary
B. Lifestyle of employees
C. Related party transactions
D. Management override of significant internal control activities
E. Sale of assets that is very similar to subsequent purchases at similar amounts

Answer

B. Lifestyle of employees

Explanation:
The correct answer is “B” because the lifestyle of employees is generally monitored as an indicator of potential fraud but is not directly related to revenue-related fraud schemes. Revenue-related frauds typically involve manipulations of transactions, documents, or internal controls rather than personal employee behavior outside of financial reporting.

Tags: Fraud Detection, Internal Controls, Related Party Transactions, Revenue Fraud
Level: Level 3

Topic: Forensic Auditing
Series: NOV 2012

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