Management Fraud Generally Refers To

question 15

Multiple Choice

Management fraud generally refers to:

• A)unintentional mistakes.
• B)noncompliance.
• C)intentional distortions of financial statements.
• D)violations of GAAS.

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Definitions:

Reasonable Assurance

This concept refers to a high level of assurance or confidence in the accuracy of financial statements and internal controls without guaranteeing 100% certainty.

Error Recording

Error recording is the process of documenting mistakes and inaccuracies found in financial statements or transactions to analyze and correct them.

Bank Statement Adjustment

Adjustments made to the bank statement balance to reflect transactions that have not been recorded by the bank, ensuring the balance matches the company's records.

Company Books Adjustment

Modifications made to a company's financial records to correct errors or account for unrecorded transactions.