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:

Maturation

The process of becoming mature, encompassing growth and development in physical, intellectual, or emotional capabilities.

Dynamic Systems View

A theoretical perspective proposing that development is a complex process, resulting from the interaction of various systems within the individual and their environment.

Universal Milestones

Developmental stages or achievements that are common to all humans, typically used to track growth and development across populations.

Adaptation

The process by which organisms adjust and change over time in response to environmental changes.