Which of the Following Types of Fraud Is the Most

question 51

Multiple Choice

Which of the following types of fraud is the most common, according to the Association of Certified Fraud Examiners?

• A)Corruption Schemes
• B)Asset Misappropriation
• C)Earnings Management
• D)Financial Statement Misstatement

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Definitions:

Price-Fixing Agreement

An illegal arrangement between businesses to set prices at a certain level, typically above market equilibrium, to maximize profits.

Secretly Increasing Sales

The strategy of covertly enhancing a company's sales numbers, possibly through non-transparent marketing tactics or undisclosed discounts.

Collusion

A non-competitive secret or illegal agreement between rivals that attempts to disrupt the market's equilibrium by influencing the market mechanism such as price or output of goods and services.

Economic Recession

A period of significant decline in total output, income, employment, and trade in an economy, usually lasting from six months to a year.