Which of the Following Is a Valid Reason Behind the Prevalence

question 39

Multiple Choice

Which of the following is a valid reason behind the prevalence of revenue-related financial statement fraud?

• A) It is easy to manipulate net income using revenues and receivables accounts.
• B) Revenue-related frauds are difficult to hide from detection.
• C) A reversing effect of the fraud automatically occurs in the subsequent period.
• D) Auditors generally focus more on balance sheet items than on revenue accounts.

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Definitions:

Social Learning Theory

As originally outlined by Bandura and Walters (1959), a theory that suggested that while classical and operant conditioning experiences are important, the majority of such experiences are primarily acquired vicariously—that is, by observation of others rather than direct personal experience. This theory has been extended to include not only direct observation of others but also information derived from books, movies, and television.

Unexplained Symptoms

Symptoms that persist without a clear medical diagnosis after extensive testing and evaluation.

Sick Role

A concept in medical sociology that describes the rights and obligations of those who are identified as legitimately ill, including exemption from social roles and responsibilities.

Hippocrates

An ancient Greek physician, often referred to as the "Father of Medicine," known for his contributions to the medical profession's ethical standards and practices.