Which of the following is not a reason why revenue fraud is common?
A) It is easy to manipulate net income using revenue and A/R accounts
B) There are acceptable alternatives for recognizing revenue
C) Organizations differ, the types of revenue they generate differ, and each revenue type requires specific recognition
D) auditors focus more on balance sheet accounts than on revenue accounts

Question

Quizplus · Accepted Answer

answer d is correct because auditors focus equally on the balance sheet and revenue accounts. A is not correct because revenue accounts are easily manipulated by creating fictitious receivables. B and C are not correct because there are many methods for recognizing revenue allowing companies to exploit the different methods.

Which of the Following Is Not a Reason Why Revenue