Which of the following mechanisms is least likely to discourage management bias in the presentation of financial information?
A)Debt covenants
B)Securities regulators
C)Class action lawsuits
D)External Auditors

Question

Quizplus · Accepted Answer

Debt covenants are agreements between a company and its creditors that may not directly address management bias in financial reporting, unlike external auditors, securities regulators, and class action lawsuits, which are more directly involved in ensuring accurate and unbiased financial reporting.

Which of the Following Mechanisms Is Least Likely to Discourage