An Example of an Incentive/pressure for Fraudulent Financial Reporting Risk

question 53

Multiple Choice

An example of an incentive/pressure for fraudulent financial reporting risk factor is

• A) a threat to the client company's financial stability caused by rapid growth compared to that of other companies in the same industry.
• B) significant operations located across international borders in jurisdictions where differing business environments exist.
• C) inadequate job applicant screening processes for employees with access to cash.
• D) ineffective communication of the company's ethical standards by management.

---

Definitions:

Mollusks

A large phylum of invertebrate animals, including species like snails, clams, and squids, characterized by a soft body and, in many cases, a calcium carbonate shell.

Echinoderms

Invertebrates with a water–vascular system, and hardened plates and spines in the skin or body.

Annelids

A phylum of invertebrate worms characterized by segmented bodies and often found in moist environments; includes earthworms, leeches, and polychaetes.

Arthropods

represent the largest phylum of animals, including insects, arachnids, and crustaceans, characterized by exoskeletons and segmented bodies.