Dell Company, a CPA firm, conducted an audit for the 2020 financial statements of Perla Corporation. During the course of the audit, the auditors noticed that the management had a known history of violations. This condition that might increase the risk of fraudulent financial reporting is related to the following category: * Management's characteristics and influence

Foundations of Business (MindTap Course List)
6th Edition
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section: Chapter Questions
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Dell Company, a CPA firm, conducted an audit for the 2020 financial
statements of Perla Corporation. During the course of the audit, the
auditors noticed that the management had a known history of violations.
This condition that might increase the risk of fraudulent financial reporting
is related to the following category: *
O Management's characteristics and influence
O Industry conditions
O Operating characteristics and financial stability
O All of the above
None of the above
Transcribed Image Text:Dell Company, a CPA firm, conducted an audit for the 2020 financial statements of Perla Corporation. During the course of the audit, the auditors noticed that the management had a known history of violations. This condition that might increase the risk of fraudulent financial reporting is related to the following category: * O Management's characteristics and influence O Industry conditions O Operating characteristics and financial stability O All of the above None of the above
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