Which of the following statements regarding fraud on behalf of an organization is true?
A) Middle management is usually the perpetrator.
B) This type of fraud benefits top executives as it generally increases stock price.
C) This type of fraud includes deflating expenses in order to save on corporate income taxes.
D) Financial statement fraud is common among publicly traded companies that are experiencing windfall profits.

Question

Quizplus · Accepted Answer

This type of fraud often benefits top executives by artificially inflating the stock price, which can increase the value of stock-based compensation and make the company appear more financially healthy than it actually is.

Which of the Following Statements Regarding Fraud on Behalf of an Organization