What Type of Risk Is Intentional Failure by Management to Accurately

question 43

Multiple Choice

What type of risk is intentional failure by management to accurately disclose violations of debt covenants?

• A)Inherent risk.
• B)Fraud risk.
• C)Control risk.
• D)Detection risk.

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Definitions:

Frontline Managers

Managers who directly supervise and support employees working on the core business activities of an organization.

Operating Employees

Workers who are directly involved in the day-to-day operations of an organization, typically responsible for executing tasks and processes.

External Environment

All outside factors and influences that impact an organization's decision-making process and overall success, including economic, legal, and technological changes.

Overpromotion Syndrome

The situation that occurs when an employee is promoted beyond their level of competence, often leading to stress and performance issues.