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andriy [413]
3 years ago
12

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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<u>Explanation:</u>

1.One of the important personnel policies are work schedule that includes the mandatory full time working hours in office, break timings, paid holidays etc. Policies have to be framed for sick leaves and family illness.

2.Performance assessment policies which should state the minimum performance requirements from the employees. This would be helpful to fire employees with very poor performances. This also helps in giving promotion and increment to employees.

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3 years ago
According to Colorado Real Estate License Law, how long is an agent responsible for maintaining client confidentiality?
Morgarella [4.7K]

Answer:

Three years from the expiration of the contract .

Explanation:

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3 years ago
A company incurs costs of $75 ($67 variable and $8 fixed) to make a product that normally sells for $120. A customer offers to b
elena-14-01-66 [18.8K]

Answer:

C : accept the offer because it will produce net income of $12,600.

Explanation:

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In the first case

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= 4,200 units × $67

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3 0
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How can international trade agreements lead to economic growth
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3 years ago
ada inc. stopped its production of oral care goods after determining apparel production to be its new primary objective. this is
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Ada Inc. stopped its production of oral care goods after determining apparel production to be its new primary objective, which is a direct result of the <u>c. </u><u>strategic planning process</u> at Ada Inc.

<h3>What is the role of strategic planning?</h3>

Strategic planning provides long-term direction to an organization's decision-makers.

Strategy planning helps the organization's leaders define their vision for the future and to marry their organization's goals and objectives with available and future resources.

The elements captured in strategy planning include the organization's vision, mission, SWOT analysis, core values, goals, objectives, and action plans.

Strategy planning remains a mere planning process until the formulated strategies go through these stages: formulation, implementation, successful outcomes, and evaluation.

Thus, at Ada Inc., there is an ongoing strategic planning process.

Learn more about the strategic planning process at brainly.com/question/17924318

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<h3>Question Completion with Answer Options:</h3>

a. tactical

b. research

c. strategic

d. economic

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1 year ago
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