Question: You are asked to be interviewed by a student newspaper regarding the nature of accounting fraud. The reporter says, As I understand it, defalcations are

You are asked to be interviewed by a student newspaper regarding the nature of accounting fraud. The reporter says, "As I understand it, defalcations are more likely to be found in small businesses, but not in larger businesses. On the other hand, financial reporting fraud is more likely to be found in larger businesses." How would you respond to the reporter's observation?

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