Which of the following is an example of a misappropriation of assets fraud?
A)Inappropriate application of accounting principles.
B)Unauthorised discounts or refunds to customers.
C)Unrecorded liabilities.
D)Improper asset valuations.

Question

Quizplus · Accepted Answer

Unauthorised discounts or refunds to customers can result in misappropriation of the company's assets, as these discounts or refunds are not authorised and are essentially giving away the company's funds to customers. This can result in financial losses for the company. Inappropriate application of accounting principles and improper asset valuations are examples of financial statement fraud, while unrecorded liabilities are a type of omission fraud.

Which of the Following Is an Example of a Misappropriation