Which of the Following Statements Is True

question 2

Multiple Choice

Which of the following statements is true?

• A) Most financial statement frauds occur in large, historically profitable companies.
• B) Most people who commit management fraud are first-time offenders.
• C) An active board of directors or audit committee does little to deter fraud.
• D) Perpetrating fraud is much easier in an organization with democratic leadership, where the decision making is spread among several individuals.

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Definitions:

Schemes

Cognitive structures or patterns of action and thought used to deal with experiences, fundamental to understanding and interacting with the world.

Piaget

Refers to Jean Piaget, a Swiss psychologist known for his pioneering work in the study of child development.

Language Growth

The process of acquiring and expanding language skills, encompassing vocabulary, grammar, and communication abilities.

Young Children

Refers to the early stages of human development, typically considered from birth to around 8 years old.