Which of the following is most likely to be presumed to
represent fraud risk on an audit?

(b) The requirement is to identify the most likely fraud
risk factor on an audit. Answer (b) is correct because the possibility
of improper revenue recognition is ordinarily presumed on
audits. Answers (a), (c), and (d) all represent potential risks, but
risks that are not ordinarily presumed on an audit. See AU-C 240
for information on the auditor’s responsibility for the consideration
of fraud in a financial statement audit.