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

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Definitions:

Organization's Design

The process of structuring an organization's roles, responsibilities, and systems in a way that aligns with its goals and strategies.

Success

Achievement of an action within a specified parameter of time, effort, or both, often measured against preset known standards of completeness, excellence, or other metrics.

Woodward's Classification

A framework developed by Joan Woodward that categorizes firms into groups based on their level of technology and how it impacts organizational structure.

Process Technology

The combination of tools, equipment, methodologies, and techniques used to produce goods or services.