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Which item could be an indicator of management bias

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Question 1: Socialites is an increasingly popular social network platform, and Sarah, a junior auditor, is helping with the risk of fraud assessment for this year's audit of the financial statements. She has been asked to identify possible indicators of management bias. Which item below could be an indicator of management bias?

Multiple Choice

Option 1: A large variance in revenues was observed due to international sales and the decrease in the value of the local currency.
Option 2: The Senior Financial Analyst computed the fair value of a derivative instrument incorrectly.
Option 3: A new CFO was hired two months before year-end to turn the company around and increase profitability in the next three years.
Option 4: The VP Marketing's performance rating is based on the increase in the number of users for the network.

Reference no: EM132716269

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