[Solved] One of the most common types of fraud that impacts the financial statements is the misappropriation of assets. Sexual Feelings: Emotions and physiological responses related to sexual attraction and desire. Defense Mechanism: Psychological strategies unconsciously employed to protect a person from anxiety arising from unacceptable thoughts or feelings. Reaction Formation: A defense mechanism where an individual behaves in a manner opposite to their actual feelings, often to hide their true emotions. Pornography: Material intended to cause sexual arousal that depicts sexual content in a manner designed to elicit or enhance sexual feelings.