Which of the following statements is true?
A) Most financial statement frauds occur in large, historically profitable companies.
B) Most people who commit management fraud are first-time offenders.
C) An active board of directors or audit committee does little to deter fraud.
D) Perpetrating fraud is much easier in an organization with democratic leadership, where the decision making is spread among several individuals.

Question

Quizplus · Accepted Answer

Most individuals who commit management fraud are indeed first-time offenders, which makes it challenging to predict and prevent fraud based solely on past behavior. This is because committing fraud often involves a complex interplay of pressure, opportunity, and rationalization that can lead someone without a criminal history to engage in such activities.

Which of the Following Statements Is True