One of the most disturbing aspects of the audit process and corporate governance responsibility is that a certain cohort can do almost anything they want despite the systems of checks and balances designed to prevent asset misappropriation and financial statement fraud. This is referred to as management:

Question

Quizplus · Accepted Answer

Management override is the ability of management to bypass and circumvent internal controls to commit fraudulent activities. This is often done by top-level executives who have more power and authority than other employees. Management override poses a significant risk to the financial reporting process, and auditors are required to specifically assess this risk during their audits. Therefore, choice A) Override is the most appropriate answer.

One of the Most Disturbing Aspects of the Audit Process