Question

The committee that was formed in 1985 to study and report on the factors that can lead to fraudulent financial reporting is the:

Answer 1

Answer:

A.

Explanation:

A Treadway Committee also known as the National Fraudulent Financial Information Commission, was a private sector alliance of five professional organization. The Committee was formed in 1985 with the purpose to combat business frauds.

COSO (Committee of Sponsoring Organisations of Treadway Commission) was formed in 1985 to sponsor the Treadway Commission.

The originator of Treadway Committee was James C. Treadway and so the committee was named. The five organization that formed this committee are all American based companies.

These companies came together to form a committee that will deal with examining the factors that can lead to fraud in financial reporting.

So, the correct answer is option A.