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:

Ethnic-minority

A group within a community that possesses unique cultural, religious, or linguistic characteristics differing from the majority population.

Immigrant Adolescents

Young individuals in the transitional stage from childhood to adulthood, who have migrated from their country of origin to another country, facing unique developmental challenges.

Self-efficacy

One's belief in their own ability to succeed in specific situations or accomplish a task.

Agency

The capacity of individuals to act independently and make their own free choices.