The Auditor Determines That Mathews Company Occupies the 3ʳᵈ Floor

Multiple Choice

The auditor determines that Mathews Company occupies the 3ʳᵈ floor of an office tower for which it pays no rent.The most likely explanation is:

A) they got lucky the landlord hasn't noticed the lack of payments.
B) landlord has weak internal controls over billings.
C) a related party transaction in which a major shareholder owns the office tower.
D) Matthews Company is engaging in fraudulent activities.