Fraudulent Financial Reporting Is a Business Reality

question 71

Multiple Choice

Fraudulent financial reporting is a business reality. While it cannot be eliminated, the risk of fraudulent reporting can be decreased. Which of the following considerations is least likely to lessen that risk?

• A) an independent audit committee
• B) an internal audit function
• C) vigilant management
• D) an increased focus on tying bonuses to short-term company performance

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Definitions:

Psychoanalytic View

A psychological perspective that emphasizes unconscious mental processes and early childhood experiences in shaping behaviors and traits.

Psychotherapy

A therapeutic approach to treat mental disorders and emotional distress through psychological techniques rather than medical means.

Client-therapist Relationship

The professional and interpersonal dynamic between a therapist and their client, which is crucial for effective therapy.

Rogers

Refers to Carl Rogers, an influential American psychologist and one of the founders of the humanistic approach to psychology.