Question $7(0\mathrm{.}5$ points$)$

$$

Attitudes and rationalization to justify a fraud include

Question $7$ options:

significant related party transactions.

an excessive focus on profit maximization.

a significant decline in demand for the client's products or services.

a high volume of transactions close to year$-$end.

Question $8(0\mathrm{.}5$ points$)$

$$

An audit is one way for investors to insure against at least part of their loss should the company they invest in fail $$ this is an example of

Question $8$ options:

agency theory.

information hypothesis.

$$insurance hypothesis.

competing incentives.