In Addition to Changes in Financial Statements, Which of the Following

question 26

Multiple Choice

In addition to changes in financial statements, which of the following can indicate financial statement fraud has occurred?

• A) Information in the footnotes to the financial statements
• B) Stable dividend payout ratio
• C) Increased hiring of qualified employees by the company
• D) Addition of an independent member on the board

---

Definitions:

Structure

Structure refers to the arrangement or organization of components within a system, leading to an orderly and functional whole.

Stability

The tendency of an individual's personality traits or psychological state to remain consistent over time.

Innate Needs

Fundamental physiological or psychological requirements for the well-being of an organism that are natural and inherent.

Human Behavior

The range of actions and mannerisms made by individuals and influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion, and genetics.