Which of the Following Are Clues That a Company May

question 137

Multiple Choice

Which of the following are clues that a company may have been "cooking the books" by fraudulently increasing their level of net sales?

• A) Several shipping clerks checked into hospitals from lifting heavy boxes.
• B) There was a very high level of returned goods shortly after year-end.
• C) Several company warehouses reported burglaries.
• D) There was a high level of inventory purchases in the following period.

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Definitions:

Fundamental Attribution Error

The tendency to overestimate the influence of internal factors in determining behavior while underestimating situational factors.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Self-Serving Bias

The common tendency to attribute one's successes to personal characteristics and failures to external factors.

Generational Identity

The collective personality, attitudes, and habits attributed to members of a specific generation, often shaped by significant social and cultural events during their formative years.