Your Employer Operates in an Industry in Which Company Pre-Tax

question 16

Multiple Choice

Your employer operates in an industry in which company pre-tax earnings are expected to increase by 5% next year.Your employer,however,has issued earnings guidance in which it declared that it expects its pre-tax earnings to increase by 11% next year.As a result,which of the following elements of the Fraud Triangle are present?

• A) Attitudes
• B) Pressure to understate expenses
• C) Opportunity to overstate revenues
• D) All three elements are present

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Definitions:

Copper Intrauterine Device

A form of birth control that is inserted into the uterus, where the copper acts as a spermicide to prevent pregnancy.

Contraception

Techniques or instruments designed to avoid conception.

Gestation

The period from conception to birth, during which an embryo or fetus develops in the uterus.

Fetus

The developmental stage of a human between embryonic state and birth, typically from eight weeks after conception until birth.