According to Professional Auditing Standards, Which of the Following Best

According to professional auditing standards, which of the following best represents a type of fraudulent financial reporting?

A) Management accrues a liability and discloses the possible outcome of a lawsuit prior to settling the matter.
B) Management reclassifies a negative cash balance by decreasing cash and increasing a current liability.
C) Management discloses its failure to meet loan covenants but states that a waiver has been received.
D) Management intentionally excludes a subsidiary from its consolidated results that it controls significantly.