Which of the Following Statements Regarding Fraud Is (Are) True

question 77

Multiple Choice

Which of the following statements regarding fraud is (are) true?

• A) Fraud is a deliberate act.
• B) Fraud can be deliberate or unintentional; the outcome of the act determines if fraud exists.
• C) A company with a strong code of ethics can eliminate fraud.
• D) A company with strong internal controls can eliminate fraud.
• E) The most common type of fraud is financial statement fraud.

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Definitions:

Drive Reduction

A theory of motivation suggesting that behaviors are motivated by the desire to reduce internal states of tension.

Incentive Motivation

The idea that the level of motivation is affected by magnitude of reward: The greater the reward magnitude, the higher the motivation to obtain that reward.

Internal Arousal

The physiological and psychological state of being alert and engaged, often as a response to external stimuli or internal thoughts.