People commit financial statement fraud to:
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A. B. C. D.B
Financial statement fraud is a type of fraud where an organization's financial statements are manipulated to deceive stakeholders such as investors, creditors, and regulators. The purpose of committing financial statement fraud is typically to make a company's financial position appear stronger, more profitable, or more stable than it really is. The end goal is to gain some form of personal benefit or advantage.
Of the four options given, A, B, C, and D, all can be motivations for committing financial statement fraud. However, the most common motivation is to conceal false business performances. This type of fraud is often committed by company executives who are under pressure to meet financial targets or are concerned about the perception of the company's financial performance.
By manipulating financial statements, executives can make a company appear more profitable, which may lead to increased stock prices and bonuses for themselves. They may also use fraudulent financial statements to obtain loans or investments that they wouldn't otherwise be able to secure.
Preserving personal status and control is another common motivation for committing financial statement fraud. Executives may feel that their reputation or job security is threatened if the company's financial performance is poor, so they manipulate financial statements to maintain the appearance of success.
Maintaining personal income is also a motivation for committing financial statement fraud. Executives may use fraudulent financial statements to secure bonuses or salary increases, or to avoid having their compensation reduced if the company's financial performance is poor.
Finally, standing outside the accounting system is a less common motivation for committing financial statement fraud. This type of fraud involves hiding financial transactions or assets outside of the company's accounting system, which makes it difficult for auditors and regulators to detect fraudulent activity. This type of fraud is often committed by small business owners or employees who want to skim profits without detection.
In summary, people commit financial statement fraud to conceal false business performances, preserve personal status and control, maintain personal income, and stand outside the accounting system. However, the most common motivation is to conceal false business performances, which is often driven by pressure to meet financial targets or maintain a positive public image of the company.