XYZ Company Requires That Its Internal Auditor Must Bring All

question 31

Multiple Choice

XYZ Company requires that its internal auditor must bring all accounting and financial reporting matters of concern to the CFO and CEO before going to the audit committee. The weakness in internal controls is most likely to lead to which element of the fraud triangle when instances of fraud occur

• A) Pressure
• B) Opportunity
• C) Rationalization
• D) Professional skepticism

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Definitions:

Transnational Corporations

are business entities that operate in multiple countries but are headquartered in one country, significantly influencing global economics and politics.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often driven by trade and investment and aided by information technology.

Anti-globalization Movement

A social movement that opposes the global integration of economies, arguing that it increases inequality within and between nations and threatens environmental and cultural diversity.

Union Activists

Individuals actively involved in promoting and defending the rights and interests of workers through labor unions.