Who is most often involved in perpetrating fraudulent financial reporting?
A) The auditors and the attorneys.
B) The treasurer and the board of directors.
C) The chief executive and chief financial officers.
D) The shareholders and the chief operating officer.

Question

Quizplus · Accepted Answer

Studies have shown that the chief executive officers (CEO) and chief financial officers (CFO) are the most frequently involved parties in fraudulent financial reporting. They have the power and control over the financial reporting process and may be motivated to manipulate financial statements to meet targets, increase stock prices, or obtain personal gain. Other parties like auditors and attorneys have a higher duty of care to detect and prevent fraud, while the treasurer and board of directors may have limited access to financial information. Shareholders and the chief operating officer also have a lower likelihood of being involved in fraudulent financial reporting.

Who Is Most Often Involved in Perpetrating Fraudulent Financial Reporting