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3 years ago

What are some common motivations of financial statement fraud examination?

Business

1 answer:

WINSTONCH [101]3 years ago

5 0

Answer:

To support a high stock price, to support a bond or stock offering, or to increase the company's stock price.

Explanation:

The motivation to publish fraudulent financial statements varies depending on the situation. A common theme in many cases of fraud is the attempt to improve the reported financial information to maintain high stock prices, support bonds or stock quotes, or raise a company's stock price. In many companies that published fraudulent financial statements, senior executives held significant stocks or stock options, and lowering the price of the stock would significantly reduce personal net worth or make worthless options. As a result, senior management had to maintain the high share price and therefore needed high returns to maintain the high share price. Investors value reports that increase profits each year. Indeed, the decline in earnings can significantly lower a company's stock price. Sometimes fraudulent financial reports cause line managers to exaggerate the results to meet the company or other expectations. Sometimes the cost of failure in corporate governance is high, and when it comes to choosing between failure and fraud, some managers quickly turn to fraud.

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Gary is the founder of an animal shelter; he shares a special bond with animals. Hence, he prefers to employ people who care for

Harrizon [31]

Answer:

normative control

Explanation:

Normative control refers to using the values that the employees share as standards instead of using policies to influence the desired behaviors. According to this, the answer is that this is an example of normative control because Gary employs people that share certain values and behaviors and these become the standard to perform their jobs.

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3 years ago

Why is it so important that managers, and people in general, should act ethically and temper their pursuit of self-interest by c

kari74 [83]

Explanation:

A leader has an essential role in an organization, through his conduct his subordinates are encouraged, motivated and can become more or less productive.

Therefore, ethical conduct is essential for managers and all people who make up an organization, as ethics and behaviors for the benefit of the community will make the work environment more positive and an organizational culture focused on development, good attitudes and collaboration, essential elements for the creation of value in an organization, for the good positioning in the internal and external environment and for the motivation and satisfaction of the employees.

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3 years ago

Ariel wants to compare the salaries for positions she was offered at two companies. What should she consider in this process?

german

Answer:

She should research the cost of living of different locations to compare against the offered salaries.
She should research the benefits included in each offer.

She should research the average salary of similar positions to see if the offers are fair.

Explanation:

Remember, the cost living at the different locations is good basis to determine how much the actual value of he salary will be worth. For instance if location A pays her $5000 a month and her living expenses from the location takes about $4500, while location B pays her $3500 a month with a living expense of $1000, then she rather goes for location B she has more extra income.

Secondly, the benefits included in salaries is also to be considered. Does it includes medical insurance, transport allowance etc.?

Third the average industry pay level would also help Ariel know whether to accept any of the offers or not.

8 0

3 years ago

Read 2 more answers

If a company’s employees are found guilty of unethical behavior, the U.S. Sentencing Commission can impose a base fine and multi

Dafna1 [17]

Answer:

Yes

Explanation:

The first step is to compute the base fine by determining what level of offense has occurred. After a base fine, the judge computes a culpability score, which is a way of assigning blame to the company. (This is important because the total fine is computed by multiplying the base fine by the culpability score).

The essence of the guidelines is not just to punish companies after their employees break the law, but rather to encourage companies to take proactive measures that will prevent white-collar crime before it happens.

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3 years ago

When should you use capitalization?

Oxana [17]

Answer:

you should use capitalization at the beginning of a sentence. you should also use capitalization for pronouns. names of things for example cities and states people names etc

4 0

3 years ago