Which of the following is NOT an incentive to provide fair and reliable financial information?
A)Management would be taking a large legal risk if they interfere with the independent auditors who are examining the financial statements.
B)External auditors would be taking a large legal risk if they allow their independence to be compromised.
C)External auditors have a reputation for integrity to protect.
D)The company could attract business partners by making their financial information appear more favorable.

Question

Quizplus · Accepted Answer

Providing favorable financial information would be an incentive to manipulate or misrepresent data in order to attract business partners, which goes against the goal of providing fair and reliable financial information. The other choices provide strong incentives to prioritize accuracy and transparency in financial reporting.

Which of the Following Is NOT an Incentive to Provide