Which of the following fraudulent acts generally takes most time and effort?
A)Lapping accounts receivable.
B)Selling stolen inventory to get cash.
C)Stealing inventory from the warehouse.
D)Creating false journal entries to overstate revenue.

Question

Quizplus · Accepted Answer

Lapping accounts receivable is a method of fraud that involves delaying the recording of cash receipts to cover up the theft of funds. It requires continuous manipulation of accounts to avoid detection, making it a time-consuming and effort-intensive process compared to the other options listed. Selling stolen inventory, stealing inventory, and creating false journal entries, while fraudulent, do not inherently require the ongoing, meticulous manipulation of records that lapping does.

Which of the Following Fraudulent Acts Generally Takes Most Time