Which of the Following Is a Factor That Relates to Incentives

question 20

Multiple Choice

Which of the following is a factor that relates to incentives or pressures 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

---

Definitions:

Bright Light

Refers to intense illumination that can influence mood, circadian rhythms, and visual processes.

Circadian Rhythm

An internal biological clock regulating the sleep-wake cycle and other physiological processes in a roughly 24-hour cycle.

Weekends

The part of the week traditionally reserved for rest and leisure activities, in many cultures spanning Saturday and Sunday.

Staying Up

The act of remaining awake, especially longer than usual or during the night.