Which of the following statements is TRUE?
A) Asset misappropriation schemes are the most common and most costly fraud schemes.
B) The CPA exam focuses on asset misappropriation as it is the costliest fraud scheme by case.
C) Asset misappropriation schemes occur more frequently, but each individual case is less costly than financial statement fraud.
D) Asset misappropriation schemes are less damaging to companies as they do not affect the financial statements.

Question

Quizplus · Accepted Answer

Asset misappropriation schemes are indeed the most common type of fraud encountered, but they typically involve smaller amounts of money for each incident when compared to the financial statement fraud, which can have a much larger impact per case.

Which of the Following Statements Is TRUE