Which of the following is a documentary symptom that relates to all kinds of understatement of liability fraud?
A) Transactions recorded in a complete or timely manner
B) Reconciliation statement on unexplained items
C) Unusual discrepancies between the entity's records and confirmation replies
D) Balances or transactions that have supporting documents

Question

Quizplus · Accepted Answer

Unusual discrepancies between the entity's records and confirmation replies are a documentary symptom of understatement of liability fraud as it may indicate that the entity is purposely downplaying their liabilities. The other options do not necessarily relate to understatement of liability fraud.

Which of the Following Is a Documentary Symptom That Relates