True/False. explain your answers

1. Unlike other types of fraud, financial statement fraud is usually not concealed and is therefore relatively easy to spot.

3. Without a confession, forged documents, or repeated fraudulent acts that establish a pattern of dishonesty, convicting someone of fraud is often difficult.

5. According to the 1999 COSO study, most companies that committed financial statement fraud had no audit committee or had an audit committee that met less than twice a year.

7. In identifying management fraud exposures, it is useful to think of the fraud exposure triangle, which includes (1) management and directors, (2) organizations and industry, and (3) relationships with others.

9. In searching for financial statement fraud, the three aspects of directors and members of management that should be known are (1) their backgrounds, (2) their motivations, and (3) their influence in making decisions for the organization.

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

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

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

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

19. 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.