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April 9, 2021

Write a short essay addressing

General Questions

Write a short essay addressing the following issues: Some managers commit undetected fraud in producing financial statements. Presumably, if the auditors were really diligent and the penalties for fraud were high enough, there would be no fraud — yet fraud exists. Does this mean that auditors are not doing good job? Or is there an alternate explanation? What is the best institutional framework for reducing fraud?

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