In Which Ways Can Management Prepare Fraudulent Financial Statements

question 82

Multiple Choice

In which ways can management prepare fraudulent financial statements?

• A)they can steal cash
• B)they can misrepresent or intentionally omit events,transactions,or other significant information
• C)they can intentionally apply accounting principles
• D)they can arrange for control activities to be improperly monitored

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Definitions:

Bankruptcy Case

A legal proceeding involving a person or business that is unable to repay outstanding debts, seeking relief through the distribution of assets or the reorganization of debts.

Procedures

Established ways of performing a task or process, often detailed in a series of steps to achieve a desired outcome.

Reward Power

The ability of an individual to influence others by controlling valued resources or rewards.

Performance

The act of carrying out or accomplishing tasks, measured against preset known standards of accuracy, completeness, and speed.