A Key Control Environment Factor in Reducing the Risk of Fraudulent

question 27

Multiple Choice

A key control environment factor in reducing the risk of fraudulent financial reporting through the overstatement of sales and accounts receivable is:

• A) management's adoption and adherence to high standards of integrity and ethical values.
• B) reducing the emphasis on sales targets.
• C) establishing an effective audit committee.
• D) all of the above.

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Definitions:

-noia

A suffix used in psychology to denote types of mental disorders or excessive fears.

Schizophrenic

Relating to schizophrenia, a psychiatric disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Schiz/o

A prefix used in medical terminology referring to split or division, commonly associated with conditions like schizophrenia, indicating a split from reality.

Egocentric

A self-centered approach or thought process, where an individual perceives everything from their own perspective, often neglecting others' views.