Question

What are the two major classifications of fraud? misappropriation of assets and fraudulent financial reporting. fraudulent...

What are the two major classifications of fraud?

misappropriation of assets and fraudulent financial reporting.

fraudulent financial reporting and intent.

misappropriation of assets and materiality.

intent and rationalization.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Misappropriation of assets and fraudulent financial reporting are two major classes of fraud.

Misappropriation of assets involves the actual theft of an entity’s assets. This can be accomplished by common theft or the following.

Causing an organization to pay for goods and services not actually received (for example fictitious vendors or employees).

Using an organization’s assets for personal use.

Embezzling receipts.

Fraudulent Financial reporting

Fraudulent financial reporting is the intentional misrepresentation of a firm’s financial statements with the aim to give investors a mistaken impression about the firm’s operating performance and profitability.

Hence OPTION A is correct.

Thank you.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
After watching the film Rogue Trader use the fraud triangle to analyze Nick Leeson’s fraudulent acts....
After watching the film Rogue Trader use the fraud triangle to analyze Nick Leeson’s fraudulent acts. Put this in a chart and describe the acts. What was the pressure? Opportunity? Rationalization? Pressure Opportunity Rationalization
Describe the profession’s response to fraudulent financial reporting.
Describe the profession’s response to fraudulent financial reporting.
1. Which of the following best describes the reason why independent auditors report on financial statements?...
1. Which of the following best describes the reason why independent auditors report on financial statements? A management fraud may exist and it is more likely to be detected by independent auditors. An audit provides credibility to the financial statements. A misstatement of account balances may exist and it is generally corrected as the result of the independent auditors' work. Poorly designed internal controls may be present. 2. Audits of financial statements are designed to obtain reasonable assurance of detecting...
During your audit of wagner corp you uncover paid invoices for material fixed assets. however, the...
During your audit of wagner corp you uncover paid invoices for material fixed assets. however, the purchase of the assets was charged to expenses. because of the possibility that this may be a misstatement arising from fraudulent financial reporting or from a misappropriation of assets, additional consideration needs to be given to these items. Find and select the appropriate paragraph in the AICPA Professional Standards which describes the manner in which the auditor should respond to potentially fraudulent misstatements assuming...
In reporting under Government Auditing Standards, an auditor most likely would be required to communicate management’s...
In reporting under Government Auditing Standards, an auditor most likely would be required to communicate management’s misappropriation of assets directly to a federal inspector general when the fraudulent activities are Accompanied by fraudulent financial reporting that results in material misstatements of asset balances. Reported to the entity’s governing body and the governing body fails to make a required report to the federal inspector general. Concealed by management by circumventing specific internal controls designed to safeguard those assets. Perpetrated by several...
Describe without specific information the steps you would take if you suspect financial reporting fraud at...
Describe without specific information the steps you would take if you suspect financial reporting fraud at an organization?
The Fraud Triangle LO 5-2 Explain the components of the Fraud Triangle. Donald R. Cressey, a...
The Fraud Triangle LO 5-2 Explain the components of the Fraud Triangle. Donald R. Cressey, a noted criminologist, is mostly credited with coming up with the concept of a Fraud Triangle. Albrecht points out that, while researching his doctoral thesis in the 1950s, Cressey developed a hypothesis of why people commit fraud. He found that trusted persons become trust violators when they conceive of themselves as having a financial problem that is nonsharable, are aware that this problem can be...
1. In the crazy Eddie case, what financial statement fraud scheme did Eddie commit? a. fictitious...
1. In the crazy Eddie case, what financial statement fraud scheme did Eddie commit? a. fictitious revenues b. overstatement of inventory c. all of these d. Improper disclosures 2. which of the following accounting areas were involved in the financial statement fraud at health south? a. Accounts Receivable b. Mergers c. Capitalized Assets d. all of these
Explain why a business taxpayer that uses GAAP for financial reporting would end up with “book-tax...
Explain why a business taxpayer that uses GAAP for financial reporting would end up with “book-tax differences” relating to the depreciation of balance-sheet assets. In other words, how do GAAP and tax depreciation differ? Identify and briefly explain at least two major differences.
what are the primary differences between financial reporting and corporate accountability reporting
what are the primary differences between financial reporting and corporate accountability reporting
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT