The Background of Both Management and the Directors Is Investigated

question 19

Multiple Choice

The background of both management and the directors is investigated during the detection of fraud in a company because:

• A) Managers often commit financial statement fraud when they fall on hard times in order to cover their bills.
• B) Financial statement fraud is like gambling, once you start you get addicted easily.
• C) Individuals high up in the company defraud on behalf of the company as opposed to against the organization
• D) Management and directors' backgrounds are not usually investigated during the detection of fraud in a company.

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Definitions:

Confrontation

A direct encounter between individuals or groups characterized by a clash of opinions, beliefs, or interests, often used in therapeutic contexts to address issues.

Sublimation

A defense mechanism in psychoanalytic theory where socially unacceptable impulses or idealizations are unconsciously transformed into socially acceptable actions or behavior.

Displacement

In psychology, a defense mechanism where an individual shifts negative feelings or behaviors from the original source to a safer or more accessible target.

Defense Mechanisms

Psychological strategies used unconsciously to protect oneself from anxiety or unacceptable thoughts and feelings.