TB MC Qu. 1-57 (Static) The possibility that the capital... The possibility that the capital markets' focus on periodic profits may tempt a company's management to bend or even break accounting rules to inflate reported net income is an example of. Multiple Choice An auditor's responsibility to inform the SEC A technical accounting issue. O An accounting theory issue Multiple Choice O An auditor's responsibility to inform the SEC. A technical accounting issue. O O An accounting theory issue. O O O An ethical dilemma