Which of the Following Is NOT a Step to Reduce

question 26

Multiple Choice

Which of the following is NOT a step to reduce financial statement fraud?

• A) Establish effective board oversight of the "tone at the top" created by management
• B) Avoid setting unachievable or unreasonable financial goals
• C) Eliminate all bonus systems bases on financial performance
• D) Avoid applying excessive pressure on employees to achieve goals

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Definitions:

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period, showing how net income is derived from business operations.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments, used to prepare financial statements.

End-of-period Spreadsheet

A tool used for adjusting and closing entries and for preparing financial statements at the end of an accounting period.

Adjusting Entries

Entries made in accounting to update the records for any incomes and expenses that have been incurred but not yet recorded.