A Key Control Environment Factor in Reducing the Risk of Fraudulent

question 27

Multiple Choice

A key control environment factor in reducing the risk of fraudulent financial reporting through the overstatement of sales and accounts receivable is:

• A) management's adoption and adherence to high standards of integrity and ethical values.
• B) reducing the emphasis on sales targets.
• C) establishing an effective audit committee.
• D) all of the above.

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Definitions:

Linguistic Determinism

The theory that language determines thought, and that linguistic categories limit and determine cognitive categories.

Linguistic Relativism

The theory that the structure of a language affects its speakers' worldview or cognition, also known as the Sapir-Whorf hypothesis.

Longitudinal Study

Research design that involves repeated observations of the same variables (such as people) over short or long periods of time, often years or decades.

PTSD

Post-traumatic stress disorder, a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.