Many financial statement frauds have been perpetrated because management:

Question

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Many financial statement frauds are committed by management to report high income to support the stock prices of their company. This is because investors and shareholders often use such financial reports to make investment decisions in the company's stock, leading to an increase in demand and higher prices. In some cases, executives may also inflate reported earnings to increase their own compensation or to meet performance targets that are tied to bonuses.

Many Financial Statement Frauds Have Been Perpetrated Because Management