In the context of identifying fraud, which of the following describes theft of inventory by employees or others?
A)Misappropriation of assets
B)Fraudulent financial reporting
C)A loss that is not the result of fraud
D)Cooking the books

Question

Quizplus · Accepted Answer

The theft of inventory by employees or others is a type of misappropriation of assets, which is a common form of fraud. Misappropriation of assets involves the theft or misuse of a company's resources, such as cash or inventory, by employees or others with access to those resources. This is different from fraudulent financial reporting, which involves manipulating financial statements to make a company look more profitable than it actually is. "Cooking the books" is another term for fraudulent financial reporting. A loss that is not the result of fraud would be a legitimate loss, such as losses incurred as part of normal business operations.

In the Context of Identifying Fraud, Which of the Following