What Is the Primary Determinate in the Difference Between Fraud

question 78

Multiple Choice

What is the primary determinate in the difference between fraud and errors in financial statement reporting?

• A)The materiality of the misstatement.
• B)The intent to deceive.
• C)The level of management involved.
• D)The type of transaction effected.

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Definitions:

Obedience

A form of social influence where an individual acts in response to a direct order from another individual, usually an authority figure.

Compliance

The act of conforming to a request or demand, often studied in social psychology as a form of social influence.

Group Polarization

Group polarization occurs when discussions within a group lead to an accentuation of the group's initial inclination, often resulting in more extreme positions.

Social Facilitation

The tendency for people to perform differently, usually better, when in the presence of others than when alone.