Two of the most common areas in the financial data of public corporations that have led to misrepresentation, or at least misunderstanding, are:
A) unrealistic estimates and areas where alternative accounting rules exist.
B) outright fraud and data entry error.
C) a lack of auditing and unrealistic estimates.
D) outright fraud and a lack of auditing.

Question

Quizplus · Accepted Answer

Unrealistic estimates and areas where alternative accounting rules exist can lead to misrepresentation or misunderstanding because they allow for subjective judgment and flexibility in financial reporting.

Two of the Most Common Areas in the Financial Data