Which of the Following Best Defines Fraud in a Financial

question 67

Multiple Choice

Which of the following best defines fraud in a financial statement auditing context?

• A) Fraud is an unintentional misstatement of the financial statements.
• B) Fraud is an intentional misstatement of the financial statements.
• C) Fraud is either an intentional or unintentional misstatement of the financial statements, depending on materiality.
• D) Fraud is either an intentional or unintentional misstatement of the financial statements, depending on consistency.

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Definitions:

Gross Margin Ratio

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company's core activities.