The two most common types of fraud impacting financial statements are:
A) fraudulent financial reporting and e-commerce fraud.
B) misappropriation of assets and embezzlement.
C) fraudulent financial reporting and misappropriation of assets.
D) cooking the books and fraudulent financial reporting.

Question

Quizplus · Accepted Answer

The two most common types of fraud impacting financial statements are fraudulent financial reporting and misappropriation of assets. Fraudulent financial reporting involves intentional misstatements or omissions in financial statements, usually with the intention to deceive investors or lenders. Misappropriation of assets, on the other hand, involves theft or misuse of an organization's resources or assets for personal gain. Embezzlement and cooking the books typically fall under these two categories of fraud. E-commerce fraud, while a common form of fraud, does not necessarily impact financial statements.

The Two Most Common Types of Fraud Impacting Financial Statements