What are the types of fraud that might occur in a company?
A)misstatements might occur when unearned revenue is not properly recorded
B)misstatements might occur from fraudulent financial reporting
C)misstatements might occur when assets are misappropriated from the business
D)misstatements might occur when inventory is not properly counted
E)misstatements might occur when management adjustments are made at the end of the reporting period
F)Both B and C

Question

Quizplus · Accepted Answer

Misstatements can occur from fraudulent financial reporting (choice B) or misappropriation of assets (choice C), both of which constitute fraud. Misstatements may also occur in the other scenarios listed (choices A, D, and E), but they do not necessarily indicate fraud.

What Are the Types of Fraud That Might Occur in a Company