Which of the Following Factors Is, According to AICPA, an Example

question 68

Multiple Choice

Which of the following factors is, according to AICPA, an example of incentives and pressures to commit fraud?

• A) Inappropriate ethical standards in the organization
• B) Ineffective monitoring of management by the board of directors
• C) Inadequate internal controls
• D) Expectations of investment analysts and significant creditors for high earnings

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Definitions:

Negotiable Instrument

A transferable document signed by the maker or drawer, promising to pay the holder a sum of money at a future date or on demand.

Contractual Rights

These are rights specifically granted to parties within a contract, allowing them to demand the performance of certain duties by others within the agreement.

Assignment

The transfer of rights under a contract to another party.

Negotiation

Direct communication between the parties to a dispute in an effort to resolve the problems without third-party intervention; transferring negotiable instruments to third parties.