Who are the primary victims of financial statement fraud?
a. Middle management
b. Organizations that buy goods or services
c. Analysts
d. Stockholders
d
FEEDBACK: a. Incorrect. While they are negatively affected by fraud, they do not rely on financial statements to the same degree as stockholders.
b. Incorrect. Organizations that buy goods or services are victims of vendor fraud.
c. Incorrect. They may be fooled by financial statement fraud, but they would not suffer as much as stockholders.
d. Correct. Stockholders are the primary victims of management fraud because they are the ones who depend most on the accuracy of the financial statements.
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