A Company Decides It Should Engage in Aggressive "Earnings Management

A company decides it should engage in aggressive "earnings management" because it feels that this will be in the interests of current shareholders, and "everybody else does it," so the company should not look bad in comparison. Which element of the fraud triangle is most clearly involved?

A) Pressures or incentives
B) Opportunities to commit fraud
C) Rationalizations
D) Sociopathic behavior

Correct Answer:

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