Financial statement fraud is committed by:

Detailed Explanation:

Rationale for Correct Answer: While asset misappropriation schemes are usually committed by lower-level employees, financial statement fraud is most often committed by senior management . This is because executives have the authority to override controls, direct accounting policies, and influence financial reporting for personal gain (bonuses, stock prices, or to conceal poor performance).

Analysis of Incorrect Options:

A. Organized criminals – May commit fraud, but financial statement fraud specifically requires authority over reporting.

B. Mid and lower-level employees – Lack sufficient authority to materially alter financial statements.

D. All of the above – Incorrect, as financial statement fraud is overwhelmingly associated with senior management.

Key Concept: Management override — financial statement fraud perpetrated by those with the authority to manipulate reports.