The Treadway Commission Studied 450 Lawsuits Against Auditors and Found

question 92

Multiple Choice

The Treadway Commission studied 450 lawsuits against auditors and found that

• A)misappropriation of assets was the reason for over one-half of the suits.
• B)fraudulent financial reporting was the reason for over one-half of the suits.
• C)white-collar criminals were responsible for only a fraction of the lawsuits.
• D)only in a very few cases were financial statements falsified.

---

Definitions:

Long-term Implications

The lasting effects or consequences of an action or condition over an extended period.

Better-than-average Effect

The cognitive bias where individuals overestimate their own qualities and abilities in relation to others.

Real-world Example

An actual, tangible instance or situation that illustrates or clarifies a concept, theory, or phenomenon.

Humanistic Approach

A psychological perspective emphasizing personal growth, self-awareness, and the inherent potential for self-fulfillment.