An unusual change in the relationship between fixed assets and depreciation is a red flag associated with which type of financial statement fraud scheme?
A) Timing differences
B) Improper asset valuation
C) Improper disclosure
D) All of the above

Question

Quizplus · Accepted Answer

An unusual change in the relationship between fixed assets and depreciation is a characteristic of improper asset valuation, which is often associated with financial statement fraud. Timing differences and improper disclosure may also be indications of financial statement fraud, but they are not specifically related to fixed assets and depreciation.

An Unusual Change in the Relationship Between Fixed Assets and Depreciation