Which Statement Is True Regarding the Three Fraud Risk Factors

Multiple Choice

Which statement is true regarding the three fraud risk factors (incentives/pressures, opportunity, and rationalization/attitude) ?

A) The auditor should determine whether and to what extent fraud risk factors are present as part of the final overall review stage of the audit.
B) The fraud risk factors should be discussed by engagement personnel during planning.
C) The existence of all three fraud risk factors indicates that fraud has occurred.
D) Lack of observation of all three fraud risk factors indicates that fraud has not occurred.