When two or more employees act together to misstate accounting records, they have committed what is referred to as:
A) a felony.
B) collusion.
C) defalcation.
D) malfeasance.

Question

Quizplus · Accepted Answer

Collusion refers to when two or more individuals conspire to commit fraudulent acts or misstate accounting records. A felony is a serious criminal offense, but not always related to accounting fraud. Defalcation refers specifically to embezzlement or misuse of funds. Malfeasance refers to any intentional wrongdoing or misconduct in a position of authority.

When Two or More Employees Act Together to Misstate Accounting