Fraudulent Financial Reporting Is a Business Reality

question 369

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)vigilant management
• D)an increased focus on tying bonuses to short-term company performance

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Definitions:

Hypothalamus

A region of the brain that regulates many bodily functions, including hunger, thirst, temperature, and the release of various hormones.

Survival Drives

Basic, instinctual urges or motivations that drive individuals to fulfill their essential needs, such as food, safety, and reproduction.

Reticular Activating System

A network of neurons located in the brainstem that plays a key role in regulating wakefulness and sleep-wake transitions.

Hypothalamus

A region of the brain that controls an immense number of bodily functions, including temperature regulation, thirst, hunger, sleep, mood, and the release of other hormones within the body.