Most Employees at a Medium-Sized Law Firm Choose Not to Report

question 62

Multiple Choice

Most employees at a medium-sized law firm choose not to report abuses because they hold a "nothing will get done about it" belief. What most likely led to the development of this belief?

• A) Employees fear retaliation for reporting.
• B) Employees have a bias about the legal profession and its reputation for corruption.
• C) Managers failed to act on previous incidences.
• D) Managers have told employees not to bother reporting.

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Definitions:

Relevance

The importance of information in decision-making; it must be timely and have predictive and confirmatory value.

Going Concern Assumption

The accounting principle that a company will continue to operate indefinitely, without the intention or necessity of liquidation.

Foreseeable Future

A concept in accounting referring to the period during which a business is expected to continue its operations without significant change.

Financial Statement Element

Components of financial statements, like assets, liabilities, equity, revenues, and expenses that provide structure to financial reporting.