Fraudulent Financial Reporting Is a Business Reality

question 3

Multiple Choice

Fraudulent financial reporting is a business reality.While it cannot be eliminated, the risk of fraudulent reporting can be decreased.Which of the following considerations is least likely to lessen that risk?

• A)An independent audit committee
• B)An internal audit function
• C)An increased focus on tying bonuses to short-term company performance
• D)Vigilant management

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Definitions:

Thyroid

A gland in the neck that produces hormones regulating growth and metabolism.

Adrenal

Pertaining to the adrenal glands, small glandular organs located above the kidneys that produce hormones like adrenaline and corticosteroids.

Parathyroid

Small glands located behind the thyroid that play a crucial role in regulating the body's calcium levels.

Stressor

Any stimulus that produces stress.