Question: (True and False) 1. Most people who commit fraud are under financial pressure. 2. Studies have found that the most common internal control problem when
1. Most people who commit fraud are under financial pressure.
2. Studies have found that the most common internal control problem when frauds occur is having a lack of proper authorizations.
3. Fraud perpetrators who manipulate accounting records to conceal embezzlements often attempt to balance the accounting equation by recording expenses.
4. Employee transfers, audits, and mandatory vacations are all ways to provide independent checks on employees.
5. New whistle-blowing laws have helped make tips and complaints more effective.
6. Coworkers are usually in the best position to detect fraud.
7. Fraud perpetrators often live beyond their means since their income does not support their lifestyle.
8. Nearly all individuals and organizations are subject to pressures and can rationalize.
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