Which of the Following Is an Illegal Act That Has

question 20

Multiple Choice

Which of the following is an illegal act that has an indirect effect on the financial statements?

• A) Fraud detected in the payment cycle by the auditor.
• B) Bribing local officials for favorable lease terms.
• C) Failure to pay required taxes.
• D) Placing foreign substances in food in an effort to save money.

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Definitions:

Predictability

The extent to which future events or behaviors can be forecasted based on current or past information.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Mental Processes

Internal, covert activities of the mind, such as thinking, feeling, and remembering.

External Environment

All outside factors and influences that impact the operation and success of an entity, including economic, social, political, and technological factors.