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An Example of an Incentive/pressure for Fraudulent Financial Reporting Risk

Question 53

Multiple Choice

An example of an incentive/pressure for fraudulent financial reporting risk factor is


A) a threat to the client company's financial stability caused by rapid growth compared to that of other companies in the same industry.
B) significant operations located across international borders in jurisdictions where differing business environments exist.
C) inadequate job applicant screening processes for employees with access to cash.
D) ineffective communication of the company's ethical standards by management.

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