Which of the following is NOT a characteristic of management fraud?

a. Top management deception.
b. Manipulation of financial statements.
c. Kickbacks or bribes.
d. Pressure to earn year-end bonuses.


c
FEEDBACK: a. Incorrect. Management fraud often involves top management's deceptive manipulation. Management fraud is when the top management deceives stockholders.
b. Incorrect. Management often uses the manipulation of financial statements to commit fraud. This is one of the easiest ways to commit a large fraud.
c. Correct. These are examples of employee embezzlement. Management fraud usually deals with financial statement manipulation.
d. Incorrect. Many managers commit fraud to receive large bonuses that are dependent upon financial performance.

Business

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