Saad Zuberov is a rookie auditor who has asked you about financial reporting frauds and how they differ from misappropriation of assets frauds. Identify for Saad Zuberov which one of the following frauds consists of misappropriation of assets.
A) improper asset valuation
B) unrecorded liabilities
C) both a and b
D) none of these

Question

Quizplus · Accepted Answer

Misappropriation of assets involves theft or misuse of an organization's assets, such as cash or inventory, whereas improper asset valuation and unrecorded liabilities are types of financial reporting frauds.

Saad Zuberov Is a Rookie Auditor Who Has Asked You