Fraud Examination 5th Edition by Steve Albrecht,Chad Albrecht,Conan Albrecht, Mark Zimbelman

Exercise 17

Most financial statement frauds occur in smaller organizations with simple management structures, rather than in large, historically profitable organizations. This is because: a. It is easier to implement good internal controls in a small organization.
B) Smaller organizations do not have investors.
C) Management fraud is more difficult to commit when there is a more formal organizational structure of management.
D) People in large organizations are more honest.