An Organization Engages in Questionable Financial Reporting Practices Due to Pressure

question 74

Multiple Choice

An organization engages in questionable financial reporting practices due to pressure to meet unrealistic performance targets. Which internal control component is most negatively affected?

• A) Monitoring.
• B) Control activities.
• C) Risk assessment.
• D) Control environment.

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Definitions:

Electric

Pertaining to, derived from, produced by, or involving electricity.

Practical

Refers to an approach or solution grounded in reality, focusing on effectiveness and feasibility rather than theoretical perfection.

Dotted Line

A line made up of small, repeated dots, often used to indicate borders, boundaries, or suggested paths that are not physically marked.

Broken Line

A line that is not continuous but consists of a series of dashes, often used in drawings to represent hidden, unseen, or imaginary boundaries or features.