Fraud Risk Factors Are Examples of Factors That Increase the Risk

question 31

Multiple Choice

Fraud risk factors are examples of factors that increase the risk of fraud.Which of the following is an example of a management "opportunities" risk factor?

• A)The company has lost a major account and income is falling.
• B)Two major competitors have gone bankrupt as margins decline in the industry.
• C)The Chief Executive Officer owns forty percent of the outstanding share capital.
• D)New accounting standards provide three different methods for valuing financial instruments.

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Definitions:

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Prejudice

A preconceived opinion or bias against an individual or group without sufficient information, often leading to discrimination and social injustice.

Oppression

Oppression involves subjecting a group or individual to unjust treatment or control, often systemically through institutional, social, or economic means.

Scapegoating

refers to the practice of unfairly blaming an individual or group for problems or failures, often to deflect attention from the real causes.