The best explanation why the fraud at Tyco was not discovered and acted on is:
A) Failure of the corporate governance system
B) External auditors told management to let the fraud go
C) Tyco management hid the fraud from the auditors
D) The fraud was not material

Question

Quizplus · Accepted Answer

The failure of the corporate governance system, which includes the board of directors and senior management, allowed for the fraudulent activities to go undetected and unchecked.

The Best Explanation Why the Fraud at Tyco Was Not