Final answer:
Management is most likely to commit financial statement reporting fraud due to their direct control over the financial reporting process. The influence of top executives over the board can lead to less effective oversight, as seen in the Lehman Brothers case.
Step-by-step explanation:
The group that is in the best position to commit financial statement reporting fraud is management. Management has the most direct control over the financial reporting process and access to the company's financial information. Unlike entry-level employees, customers, or even the board of directors, management can manipulate accounting records with relative ease and are often involved in setting financial targets that may incentivize such fraud.
In theory, the board of directors is tasked with corporate governance and oversight, but top executives typically play a significant role in influencing board composition. This influence can weaken the board's capacity to provide effective oversight. The collapse of Lehman Brothers illustrates a failure in corporate governance, where the board and other governing entities did not prevent misleading financial information from being reported.