Management's Attitude Toward Aggressive Financial Reporting and Its Emphasis on Meeting

question 47

Multiple Choice

Management's attitude toward aggressive financial reporting and its emphasis on meeting projected profit goals most likely would significantly influence an entity's control environment when:

• A)external policies established by parties outside the entity affect its accounting practices.
• B)management is dominated by one individual.
• C)internal auditors have direct access to the board of directors and the entity's management.
• D)the audit committee is active in overseeing the entity's financial reporting policies.

---

Definitions:

Trial by Jury

A legal process in which a jury either makes a decision or makes findings of fact which are then applied by a judge.

Double Jeopardy

A legal principle that prohibits an individual from being tried twice for the same crime, ensuring protection against repeated legal actions.

Self-Incrimination

The act of implicating oneself in a crime, which the Fifth Amendment of the U.S. Constitution protects against by allowing individuals to refrain from answering questions that could incriminate them.

Selective Incorporation

A constitutional doctrine that ensures states cannot enact laws that infringe on the rights of citizens that are protected under the Bill of Rights.