The client may use a variety of methods to understate expenses and payables.These include
A)failure to review accounts payable at the end of the year
B)failure to record payroll expense or fringe benefits at year end
C)failure to review accrued expenses at year end
D)rationalization of expenses
E)failure to record long term liabilities
F)both A and D
G)both B and E

Question

Quizplus · Accepted Answer

Methods to understate expenses and payables often involve failures in recording or reviewing financial obligations. Failure to record payroll expenses or fringe benefits at year-end (B) and failure to record long-term liabilities (E) directly lead to understating expenses and payables, as they omit significant financial commitments from the records.

The Client May Use a Variety of Methods to Understate