Which of the following actions is more likely to be a result of error rather than fraud?
A)consignment sales are knowingly recorded as revenue
B)orders are shipped to a customer with a bad credit rating
C)fictitious revenue transactions are recorded and reported
D)subsequent period revenue is deliberately recorded in the current period

Question

Quizplus · Accepted Answer

Shipping orders to customers with bad credit ratings is a mistake or error, as it violates the company's credit policy or procedures. It may result from an ineffective credit approval process or the failure to check credit ratings. Conversely, options A, C, and D involve intentional actions to deceive or misrepresent financial information, which represents fraudulent activities. Recording consignment sales as revenue, creating fictitious revenue transactions, or "pulling in" subsequent period revenue to meet current-period targets are all examples of fraudulent activities.

Which of the Following Actions Is More Likely to Be