Question: When considering fraud risk factors relating to managements characteristics, which of the following is least likely to indicate a risk of possible misstatement due to

When considering fraud risk factors relating to management’s characteristics, which of the following is least likely to indicate a risk of possible misstatement due to fraud?

a. Failure to correct known reportable conditions on a timely basis.

b. Nonfinancial management’s preoccupation with the selection of accounting principles.

c. Significant portion of management’s compensation represented by bonuses based upon achieving unduly aggressive operating results.

d. Use of unusually conservative accounting practices.

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