The general type of fraud that involves intentionally misstating items or omitting important facts from the financial statements is typically known as _______.
A)fraudulent financial reporting
B)writing checks to fictitious vendors
C)using company cars for personal use
D)theft of inventory by employees

Question

Quizplus · Accepted Answer

Fraudulent financial reporting involves intentionally misstating items or omitting important facts from the financial statements, which can be done through a variety of methods including manipulation of accounting records, providing misleading disclosures, and intentional misapplication of accounting principles. Writing checks to fictitious vendors, using company cars for personal use, and theft of inventory by employees are all examples of other types of fraud that may occur within a company.

The General Type of Fraud That Involves Intentionally Misstating Items