Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A) Liability understatements are easier to detect than other types of financial statement fraud.
• B) Analytical symptoms related to accounts payable understatements usually relate to reported balances that appear too low.
• C) A seasoned fraud examiner will look for unusual liability account changes to detect fraud.
• D) Companies in trouble have a strong motivation to understate liabilities.

---

Definitions:

Stakeholder Ethics

Principles and guidelines that govern the interactions and responsibilities of individuals or organizations towards those who have an interest or stake in a project, outcome, or business.

Johnson & Johnson

Johnson & Johnson is a multinational corporation founded in 1886 that develops medical devices, pharmaceutical, and consumer packaged goods.

Employees

Individuals who work for someone else or for a company in exchange for compensation.

Citizenship Efforts

Activities undertaken by individuals that go beyond their basic job requirements to contribute positively to the organization's environment.