Saad Zuberov Is a Rookie Auditor Who Has Asked You

question 30

Multiple Choice

Saad Zuberov is a rookie auditor who has asked you about financial reporting frauds and how they differ from misappropriation of assets frauds. Identify for Saad Zuberov which one of the following frauds consists of misappropriation of assets.

• A) improper asset valuation
• B) unrecorded liabilities
• C) both a and b
• D) none of these

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Definitions:

Powers of Attorney

A legal document that grants one individual (the agent) the authority to act on behalf of another (the principal) in legal or financial matters.

Utmost Good Faith

A principle requiring all parties to a contract, especially in insurance, to act honestly and not mislead or withhold critical information from each other.

Express Agreement

A contract in which the terms are stated openly and explicitly, and agreed upon by all parties involved.

Utmost Good Faith

A principle requiring parties to a contract to act honestly and not mislead or withhold critical information from one another.