Which of the following factors is, according to AICPA, an example of incentives and pressures to commit fraud?
A) Inappropriate ethical standards in the organization
B) Ineffective monitoring of management by the board of directors
C) Inadequate internal controls
D) Expectations of investment analysts and significant creditors for high earnings

Question

Quizplus · Accepted Answer

The expectations of investment analysts and significant creditors for high earnings can create incentives and pressures on the organization to commit fraud in order to meet those expectations. AICPA identifies this as one of the factors that can lead to fraudulent behavior. The other options listed are also risk factors for fraud, but they fall under different categories such as opportunity (inadequate internal controls) and tone at the top (inappropriate ethical standards in the organization).

Which of the Following Factors Is, According to AICPA, an Example