Anickm03
Answered

Pressure from superiors and investors or from the media to make a firm's numbers "look good" in order to drive its stock upward can contribute to employees making poor choices. When a firm inflates sales or earnings or deflates expenses in its financial reporting, this organization is engaging in:

A. ethical conduct
B. an audit
C. accounting
D. fraud



Answer :

GinnyAnswer

Final answer:

Fraud occurs when firms manipulate financial numbers to deceive stakeholders, driven by pressure to boost stock prices.


Explanation:

Fraud refers to the act of inflating sales, earnings, or deflating expenses in financial reporting to deceive stakeholders. Pressure from superiors to boost stock prices can lead employees to engage in unethical conduct by manipulating financial numbers. This deceptive practice undermines transparency and trust in the organization.


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