Which of the Following Is a Factor That Relates to "Attitudes

question 32

Multiple Choice

Which of the following is a factor that relates to "attitudes or rationalization" to commit fraudulent financial reporting?

• A)significant accounting estimates involving subjective judgments
• B)excessive pressure for management to meet debt repayment requirements
• C)management's practice of making overly aggressive forecasts
• D)high turnover of accounting,internal audit,and information technology staff

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Definitions:

Real Wage Increases

Adjustments in wages that are above the rate of inflation, resulting in an increase in purchasing power for the wage earner.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling.

Borrowers

Individuals or entities that take out loans from financial institutions or other sources, committing to repay them over a specified period, often with interest.

Lenders

Individuals, organizations, or institutions that provide funds to borrowers under the agreement that the funds will be repaid with interest at a later date.