Which of the following actions did the Treadway Commission recommend to reduce fraudulent financial reporting? Establish financial incentives that promote integrity in the financial reporting process. Identify and understand the factors that lead to fraudulent financial reporting. Assess the risk of corruption and misappropriation of assets within the company. Design and implement internal controls to provide reasonable assurance of preventing fraudulent financial reporting.

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Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.