Which of the following creates an opportunity for fraud to be committed in an organization?
A)Management demands financial success.
B)Poor internal control.
C)Commitments tied to debt covenants.
D)Management is aggressive in its application of accounting rules.

Question

Quizplus · Accepted Answer

Poor internal control creates an opportunity for fraud to be committed in an organization as it allows perpetrators to manipulate or misrepresent financial records without being detected. A lack of segregation of duties, inadequate oversight, and weak or nonexistent monitoring or reporting mechanisms are some examples of factors that contribute to poor internal control. The other options may also create pressure or motivation for fraudulent behavior, but they do not necessarily provide the opportunity for fraud to occur.

Which of the Following Creates an Opportunity for Fraud to Be