Which of the following is one of the lessons learned from the business failures of the early 2000s?
A) Top management should set the ethical climate of a firm.
B) Overreliance on earnings per share may encourage fraudulent behavior.
C) External auditors should get to know top management well,both personally and professionally,so that they have a strong working relationship.
D) Executive compensations linked to stock performance may result in fraudulent activity.
Correct Answer:
Verified
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