Persuasive evidence of an arrangement does not exist when:
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A. B. C. D.B
When evaluating the existence of an arrangement, a fraud examiner must consider whether there is persuasive evidence to support the arrangement. Persuasive evidence is evidence that is strong enough to support a conclusion or belief, and it is typically obtained through documentation and corroborative witness testimony.
Based on the options given in the question, the correct answer is B. No written or verbal agreement exists.
Explanation for why the other options are incorrect:
A. Revenue and corresponding expenses doesn't match each other - This option relates to whether the financial statements accurately reflect the revenue and expenses associated with the arrangement, which is a different issue than whether an arrangement exists.
C. Timings not meet properly - This option is unclear, but it likely refers to whether the timing of the arrangement is consistent with the terms of the agreement. However, this is not necessarily an indication that an arrangement does not exist.
D. Capitalized expenses and Liabilities will not be up to satisfied level - This option is also unclear, but it may refer to whether the capitalized expenses and liabilities associated with the arrangement are reasonable or consistent with industry norms. Again, this is not necessarily an indication that an arrangement does not exist.
In summary, persuasive evidence of an arrangement exists when there is documentation or corroborative witness testimony to support the existence of the arrangement. The absence of a written or verbal agreement is a clear indication that persuasive evidence of an arrangement does not exist.