An example of a fraudulent financial reporting is:
A) overlooking the revaluation of obsolete inventory.
B) cashier misappropriating funds from a cash sale and not recording the transaction.
C) intentional overstatement of sales.
D) all of the above

Question

Quizplus · Accepted Answer

Intentional overstatement of sales is a clear example of fraudulent financial reporting, as it misrepresents the financial performance of a company. Overlooking the revaluation of obsolete inventory or misappropriation of funds by a cashier are also forms of financial fraud, but they fall under the category of misappropriation of assets rather than fraudulent financial reporting. Therefore, the best choice is C.

An Example of a Fraudulent Financial Reporting Is