The Two Most Common Types of Fraud Impacting the Financial

question 18

Multiple Choice

The two most common types of fraud impacting the financial statements are:

• A)fraudulent financial reporting and e-commerce fraud.
• B)misappropriation of assets and embezzlement.
• C)fraudulent financial reporting and misappropriation of assets.
• D)cooking the books and fraudulent financial reporting.

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Definitions:

Exclusive Personal Services

Contractual agreements where an individual agrees to provide their services exclusively to a single employer or client.

Independent Contractor

An individual who provides goods or services to another entity under terms specified in a contract or within a verbal agreement, not considered an employee.

Tort Law

The area of law that deals with civil wrongs, not arising from contracts, which can be redressed by awarding damages.

Restitution

The act of restoring something to its original state or compensating for loss or damage; in law, it usually refers to the compensation for harm or injury.