Which of the Following Best Represents Financial Statement Fraud

question 27

Multiple Choice

Which of the following best represents financial statement fraud?

• A)The transfer agent issues 40,000 shares of the company's stock to a friend without authorization by the board of directors.
• B)The controller of the company decreases a contingent liability by $3 million because the company will otherwise miss analysts' expectations this quarter.
• C)The in-house attorney receives payments from the French government for negotiating the development of a new plant in Paris.
• D)The accounts receivable clerk covers up the theft of cash receipts by writing off older receivables without authorization.

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Definitions:

Symmetry

The property where an object or design is balanced and proportionate, often mirroring one side to another.

Performance Management

The ongoing process of communication between a supervisor and an employee to ensure the achievement of organizational goals.

Establishing Standards

The act of defining benchmarks or criteria against which processes, products, or activities can be measured or judged.

Top Performers

Individuals in an organization who consistently exceed performance expectations and standards.