Who Is Most Likely to Perpetrate Fraudulent Financial Reporting

question 37

Multiple Choice

Who is most likely to perpetrate fraudulent financial reporting?

• A) members of the board of directors
• B) production employees
• C) management of the company
• D) the internal auditors

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Definitions:

Compensation

Payment or benefit given, often to employees or in settlement of a claim, for services rendered, loss suffered, or injury incurred.

Superior Claim

A legal assertion that some interests or rights (such as those in property) are ranked higher than others, giving them priority in being honored or executed.

Harvester

An individual or machine that gathers crops or other natural resources from fields or natural habitats.

Storage Yard

A designated outdoor area used for the keeping of goods, materials, vehicles, or equipment.