1. An organization's relationship with other organizations and individuals is of no interest to a fraud examiner.

2. Recording fictitious revenues is one of the most common ways of perpetrating financial statement fraud.

3. Most often, the controller or chief financial officer (CFO) of a corporation is the perpetrator of financial statement fraud because of his or her knowledge of accounting and unlimited access to accounts.

4. Financial statement fraud, like other types of fraud, is most often committed against an organization instead of on behalf of the organization.

5. Most people who commit management fraud are repeat offenders.

6. Most financial statement frauds occur in large, historically profitable organizations.

7. Zero-order strategic reasoning takes into account the potential actions of others before one decides to act.

8. Backdating is a method of dating stock options so that stock option holders can maximize their payout.

9. Identifying fraud exposures is one of the most difficult steps in detecting financial statement fraud.

20. Higher-order reasoning is the most challenging of the types of strategic reasoning, but can potentially be the most effective in detecting financial statement fraud.