Fraudulent journal entries often have unique characteristics.These include
A)the use of an unrelated,unusual,or seldom used account in the entry
B)an entry made by an individual who normally makes ledger entries
C)an entry recorded at the end of a time period or as a post closing entry with little or no explanation of the reason for the adjustment
D)new account numbers are associated with the entry
E)the journal entry contains no round numbers nor numbers with consistent ending digits
F)both A and C
G)both B and D
H)both D and E

Question

Quizplus · Accepted Answer

Choices A and C both identify characteristics commonly found in fraudulent journal entries, such as the use of unusual or infrequently used accounts and adjustments made at the end of a period without explanation. Choice B is not necessarily a clear indicator of fraudulent activity, as individuals who normally make ledger entries may also be responsible for adjusting entries. Choice D may be a potential red flag, but may also occur in legitimate situations such as the creation of new accounts. Choice E is not a definitive characteristic of fraudulent entries, as some legitimate entries may also contain inconsistent numbers. Therefore the best choice based on the given options is F, as it includes two commonly observed characteristics of fraudulent journal entries.

Fraudulent Journal Entries Often Have Unique Characteristics.These Include