Which of the Following Is a Valid Reason Behind the Prevalence

question 39

Multiple Choice

Which of the following is a valid reason behind the prevalence of revenue-related financial statement fraud?

• A) It is easy to manipulate net income using revenues and receivables accounts.
• B) Revenue-related frauds are difficult to hide from detection.
• C) A reversing effect of the fraud automatically occurs in the subsequent period.
• D) Auditors generally focus more on balance sheet items than on revenue accounts.

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Definitions:

Decision Making

The process of identifying and choosing alternatives based on the values and preferences of the decision maker.

Positive Feedback

A type of feedback that reinforces and encourages the behavior or performance that led to it, often used to motivate individuals or affirm strategies.

Producing Scarves

The process of creating scarves through various methods such as knitting, weaving, or printing, typically involving textiles.

Organization

A group of people working together in a structured and coordinated fashion to achieve a set of goals or objectives.