Which of the following is an example of a misappropriation of assets fraud?
A) unauthorized discounts or refunds to customers
B) inappropriate application of accounting principles
C) unrecorded liabilities
D) improper asset valuations

Question

Quizplus · Accepted Answer

Unauthorized discounts or refunds to customers involve the misuse or theft of company assets, fitting the definition of misappropriation of assets fraud. Choices B, C, and D relate more to fraudulent financial reporting rather than the direct theft or misuse of assets.

Which of the Following Is an Example of a Misappropriation