Disclosure frauds occur through misrepresentations about the company or through what other intentional act?
A) Omissions in the footnotes to the financial statements
B) Falsely increasing sales
C) Creating off-balance sheet accounts
D) Conducting related-party transactions

Question

Quizplus · Accepted Answer

Disclosure frauds can occur through omissions in the footnotes to the financial statements. This is because these footnotes often contain important information about the company's financial condition that is not disclosed in the main part of the financial statements. If this information is intentionally omitted, it can mislead investors and other stakeholders.

Disclosure Frauds Occur Through Misrepresentations About the Company or Through