MoniMarcelloni's team has been asked to tackle three ongoing frauds and her partner has asked her to follow up only on the financial reporting fraud. Which of the following items will she be pursuing?
A) theft of stock by employees or customers
B) employees remaining on the payroll after ceasing employment
C) recording fictitious sales
D) unauthorized refunds to customers

Question

Quizplus · Accepted Answer

Recording fictitious sales is an indicator of financial reporting fraud as it leads to an overstatement of revenue and profits. The other options, theft of stock, employees remaining on the payroll, and unauthorized refunds, might be fraudulent activities but are not directly related to financial reporting.

MoniMarcelloni's Team Has Been Asked to Tackle Three Ongoing Frauds