Opportunity to Commit Fraud Is Comprised of Three Stages

question 16

Multiple Choice

Opportunity to commit fraud is comprised of three stages.The stage that often takes most time and effort would include

• A) stealing inventory from the warehouse.
• B) selling stolen inventory to get cash.
• C) lapping accounts receivable.
• D) creating false journal entries to overstate revenue.

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Definitions:

Effective Interest Amortization

A method of adjusting the carrying amount of a bond for the amount of interest expense recognized over the bond's life.