Which of the following best represents financial statement fraud?
A)The transfer agent issues 40,000 shares of the company's stock to a friend without authorization by the board of directors.
B)The controller of the company decreases a contingent liability by $3 million because the company will otherwise miss analysts' expectations this quarter.
C)The in-house attorney receives payments from the French government for negotiating the development of a new plant in Paris.
D)The accounts receivable clerk covers up the theft of cash receipts by writing off older receivables without authorization.

Question

Quizplus · Accepted Answer

Financial statement fraud involves intentional misrepresentation of financial information, such as manipulating liabilities to meet financial expectations.

Which of the Following Best Represents Financial Statement Fraud