Which of the following statements describes circumstances that underlie employee incentives to misappropriate assets?
A) Weak internal controls encourage employees to take chances.
B) Dissatisfied employees may steal from a sense of entitlement.
C) Employees have a vested interest in making the company's financial statements erroneous.
D) If management cheats customers and gets away with it, then employees believe they can do the same to the company.
Correct Answer:
Verified
Q27: With respect to fraudulent financial reporting, most
Q28: _ involves deliberate actions taken by management
Q29: Which of the following is one of
Q30: Fraudulent financial reporting may be accomplished through
Q31: The most common technique used by management
Q33: Which of the following issues is normally
Q34: Sources of information gathered to assess fraud
Q35: ISA 230 requires auditors to document which
Q36: After fraud risks are identified and documented,
Q37: As part of the brainstorming sessions, auditors
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