Question

In: Accounting

Research has shown that situational pressures and opportunity are factors that contribute to fraudulent behavior.

Required

a. Identify two situational pressures in a public company that would increase the likelihood of fraud.

b. Identify three opportune moments that would increase the likelihood of fraud.

Expert Solution

a.

Examples of situational pressures in a public company that would increase the likelihood of fraud include:

Competitive pressures.

Excessive expectations for financial targets.

Penalties for not meeting budget targets.

Sudden decreases in revenue or market share.

Payment with stock options or other bonus programs that depend on short-term economic performance

b.

Opportunity situations that would increase the likelihood of fraud include:

Weak or nonexistent internal accounting controls.

Accounting estimates requiring significant judgment by company management.

Poor segregation of duties.

Absence of policies that limit collusion, such as nepotism rules.

Junaid answered 10 months ago

Research has shown that lifestyle behaviors, dietary, environmental factors and occupational exposure contribute to the number...

Research has shown that lifestyle behaviors, dietary, environmental factors and occupational exposure contribute to the number of cancer cases and deaths. Health indicators are important factors to consider when determining the origins of disease. How can variables in non-modifiable and modifiable factors influence a person’s health status? Discuss the difference between modifiable and non-modifiable risk factors. Include all in your response: Age Gender Genetics Environment Activity level

Sociological Factors and Criminal Behavior What sociological factors contribute to criminal behavior? The final statement made...

Sociological Factors and Criminal Behavior What sociological factors contribute to criminal behavior? The final statement made by mass murderer Andrew Kehoe was, “Criminals are made not born” (1927). Do you agree with statement, why or why not?

QUESTION 5 Incentives to commit fraud, opportunity to commit fraud, and attitudes to justify fraudulent behavior...

QUESTION 5 Incentives to commit fraud, opportunity to commit fraud, and attitudes to justify fraudulent behavior are part of the fraud triangle but are also referred to in this chapter as "fraud risk factors." True False QUESTION 6 A subsequent event is an event that occurs after the close of the accounting period but should be disclosed with the financial statements if it is significant. True False QUESTION 7 When "revenue expenses" are capitalized, net income will be overstated. This is...

Explain how situational factors are likely to influence the degree of consistency between attitudes and behavior. Because...

Explain how situational factors are likely to influence the degree of consistency between attitudes and behavior. Because attitudes are learned predispositions to respond, why don’t marketers and consumer researchers just measure purchase behavior and forget attitudes?

Research has shown that online networks can stimulate behavior changes and that these effects are stronger...

Research has shown that online networks can stimulate behavior changes and that these effects are stronger when coming from close friends (Bond et al., 2012). Give an example of how you perceive online networks have changed behavior.

WHAT FACTORS CONTRIBUTE TO CHILDREN LEARNING AND DEMONSTRATING AGGRESSIVE BEHAVIOR? LIST AT LEAST TWO, AND EXPLAIN...

WHAT FACTORS CONTRIBUTE TO CHILDREN LEARNING AND DEMONSTRATING AGGRESSIVE BEHAVIOR? LIST AT LEAST TWO, AND EXPLAIN THE CONTRIBUTION OF EACH.

What is anchoring bias? What is herding behavior? How can these contribute to market bubbles? Research...

What is anchoring bias? What is herding behavior? How can these contribute to market bubbles? Research the performance of the S&P 500 over the past 6 months. Do you think that any of these biases might be contributing to a market bubble? Why or Why not?

11. Research has shown that three factors can affect investors’ returns in their portfolios: Security selection,...

11. Research has shown that three factors can affect investors’ returns in their portfolios: Security selection, market timing, and asset allocation. Of these factors, which one has the greatest impact on the portfolio performance? a. Asset allocation b. Security selection c. Market timing d. They are all pretty much equal 12. Which of the following is not an advantage of index investing? a. Index funds avoid behavioral biases b. Index funds don’t suffer from...

Tom Alexander has an opportunity to purchase any of the investments shown in the following. The...

Tom Alexander has an opportunity to purchase any of the investments shown in the following. The purchase price, the amount of the single cash inflow, and is year of receipt are given for each investment. Which purchase recommendations would you make, assuming that Tom can earn 10% on his investment. Investment A: today price—$18000, single cash inflow— $30000, year of receipt —5 Investment B: today price—$600, single cash inflow— $3000, year of receipt —20 Investment C: today price—$3500, single cash...

There has been evolutionary factors that have been suggested to contribute to the prevalence of altruistic...

There has been evolutionary factors that have been suggested to contribute to the prevalence of altruistic behavior in our species. Describe these factors and explain how helping others contributes to our own survival. Include examples of altruistic behavior shown by individuals and institutions in response to the current pandemic.