Which of the Following Items Is NOT True, According to the Study

question 4

Multiple Choice

Which of the following items is NOT true, according to the study done by the Committee of Sponsoring Organizations (COSO) ?

• A) Frauds were most commonly perpetrated by improper revenue recognition, overstating assets, and understating expenses.
• B) The average financial statement fraud period extended over 5 years and the frequency of fraudulent acts was sporadic during the period.
• C) Severe consequences were associated with companies who committed financial statement fraud (e.g., Chapter 11 bankruptcy, stock was delisted, lawsuits by stockholders or bondholders).
• D) Most companies were experiencing net losses or were just holding break-even positions in periods prior to the fraud. Meaning, many frauds were used to reverse downward spirals or to maintain upward trends.

Comprehend the concept of normative and informational influence on individual and group behavior.

Identify the mechanisms of group polarization and its impact on decision-making.

Understand the concept and implications of groupthink in team dynamics.

Comprehend different approaches to organizational communication.

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Definitions:

Logical Incrementalism

A strategy and management philosophy where complex decisions are broken down into smaller, manageable parts, allowing for incremental problem solving and implementation.

Emergent Strategy

The plan that changes incrementally due to environmental changes.

Intended

Something planned or meant to take place, often referring to actions, outcomes, or objectives that are deliberate or purposeful.

Growth Strategy

A plan of action designed to achieve a higher level of market share or company size, often through expansion, product development, or acquisition.