________ is fraud that involves theft of an entity's assets.
A) Fraudulent financial reporting
B) A "cookie jar" reserve
C) Misappropriation of assets
D) Income smoothing

Question

Quizplus · Accepted Answer

Misappropriation of assets is the type of fraud that involves theft of an entity's assets. This can include stealing cash, inventory, or other assets from the company without proper authorization. Fraudulent financial reporting refers to misrepresenting financial information in order to deceive investors or other stakeholders. A "cookie jar" reserve involves improperly manipulating financial reserves to manage reported earnings. Income smoothing is the practice of manipulating financial results to create a more stable pattern of income over time.

________ Is Fraud That Involves Theft of an Entity's Assets