Which of the following is a factor that relates to attitudes or rationalization to commit fraudulent financial reporting?
A) Significant accounting estimates involving subjective judgments.
B) Excessive pressure for management to meet debt repayment requirements.
C) Management's practice of making overly aggressive forecasts.
D) High turnover of accounting, internal audit and information technology staff.

Question

Quizplus · Accepted Answer

Management's practice of making overly aggressive forecasts can create an environment where rationalization for fraudulent financial reporting occurs, as it may lead to justifying unethical actions to meet those forecasts.

Which of the Following Is a Factor That Relates to Attitudes