Which of the following is not a characteristic of management fraud:
A) Top management deception
B) Manipulation of financial statements
C) Kickbacks or bribes
D) Pressure to earn year-end bonuses

Question

Quizplus · Accepted Answer

A: A is incorrect because management fraud often involves top management's deceptive manipulation. Management fraud is when the top management deceives stockholders.
B: B is incorrect because management often uses the manipulation of financial statements to commit fraud. This is one of the easiest ways to commit a large fraud.
C: C is correct. (Kickbacks and bribes usually deal with employees not managers)
D: D is incorrect because many managers commit fraud to receive large bonuses that are dependent upon financial performance.

Which of the Following Is Not a Characteristic of Management