Certified Fraud Examiner (CFE) — Question 27

People commit financial statement fraud to:

Answer options

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

Correct answer: B

Explanation

The correct answer is B because individuals often commit fraud to protect their personal status and control within an organization. Options A, C, and D, while related to the concept of financial manipulation, do not directly address the primary motivation of preserving personal reputation and authority.