Fraudulent financial reporting is most likely to be committed by whom?
A)Line employees of the company
B)Outside members of the company's board of directors
C)Company management
D)The company's auditors

Question

Quizplus · Accepted Answer

Fraudulent financial reporting is most likely to be committed by company management. This is because they have access to the financial information and are responsible for preparing the financial statements. They may engage in fraudulent activities to meet performance targets, conceal poor financial performance or mislead investors. While line employees may also carry out financial fraud, they may not have the authority or access to carry out such schemes. Outside members of the board of directors are not involved in the day-to-day operations of the company and may not be aware of the details of the company's financial reporting. The company's auditors have a responsibility to detect and report any material misstatements found in the financial statements, so they are not likely to be involved in fraudulent financial reporting themselves.

Fraudulent Financial Reporting Is Most Likely to Be Committed by Whom