Which of the following is a factor that relates to attitudes or rationalization to commit fraudulent financial reporting?
A)Significant accounting estimates involving subjective judgments
B)Excessive pressure for management to meet debt repayment requirements
C)Management's practice of making overly aggressive forecasts to third parties
D)High turnover of accounting, internal audit and information technology staff

Question

Quizplus · Accepted Answer

Management's practice of making overly aggressive forecasts to third parties relates to attitudes or rationalization, as it reflects a mindset that justifies or rationalizes the manipulation of financial reports to meet those forecasts.

Which of the Following Is a Factor That Relates to Attitudes