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Fraudulent financial reporting
Auditing
How can 'high employees turnover' be a reason for fraudulent financial reporting?
Answers (7)
Sriram Somayajula Admin
A lot of people in key departments leave when company is unethical and cooking the books
Sir but high employees turnover is the cause and fraudulent financial reporting is the effect as per notes
Thread Starter
Kumar SarthakPaid notes by Indigolearn
It means one of the perceived opportunities to do Fraudulent Financial Reporting is High turnover of employees...... High employee turnover is a warning sign of low morale among an organisationâ??s workforce. When there is high turnover , it leads to loss of experience and trained staff that know the policies and goals of the organisation i.e. the institutional memory regarding how transactions are processed is weakened, resulting in less attention to controls and then resulting in an opportunity for fraudulent reporting.
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