You Are Assessing the Fraud Risks at Your Client,Bourdain Industries,Inc

question 65

Multiple Choice

You are assessing the fraud risks at your client,Bourdain Industries,Inc.Which of the following would be considered an example of the opportunity component of the fraud triangle?

• A)The company is required by the bank to maintain a debt-to-equity ratio no higher than 2 to 1 and a current ratio of 1.5 or higher.
• B)Management's compensation package includes stock options and a bonus tied to company profits.
• C)A prevalent sentiment amongst employees is that the company is flush with funds and could easily afford a small loss of assets.
• D)The company generates the bulk of its revenues via cash-based transactions and at any one time a high balance of cash is kept on hand.

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Definitions:

Psychotropic Medication

Medications that affect the mind, emotions, and behaviors by altering brain chemistry.

Stimulants

Psychoactive drugs that result in an altered state of consciousness by increasing behavior and mental activity.

Antisocial Personality Disorder

A mental health disorder characterized by a long-term pattern of manipulation, exploitation, or violation of others' rights.

Therapeutic Relationship

The professional relationship between a therapist and a client, which is crucial for effective therapy and involves trust, rapport, and mutual respect.