Regarding related-party transactions, fraud occurs when: Question 4 options: Ass

ID: 2725243 • Letter: R

Question

Regarding related-party transactions, fraud occurs when:

Question 4 options:

Assets are transferred between related parties.

Business deals or arrangements are made between two parties that create a conflict of interest in a business setting.

The transactions are not properly disclosed.

All of the above

Assets are transferred between related parties.

Business deals or arrangements are made between two parties that create a conflict of interest in a business setting.

The transactions are not properly disclosed.

All of the above

ANS: C

C: Correct; related-party transactions must be disclosed.

A: Incorrect; this is acceptable, as long as the related-party transaction is disclosed.

B: Incorrect; this is acceptable, as long as the related-party transaction is disclosed.

D: Incorrect

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