Fraudulent financial reporting usually involves manipulation of amounts rather than disclosures.

Question

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Fraudulent financial reporting often involves manipulation of financial amounts, such as inflating revenues or understating expenses, rather than making false disclosures. This is because manipulating amounts can have a direct impact on the financial statements and can deceive investors, creditors, and other stakeholders. False disclosures, on the other hand, may require more effort to create and are often easier to detect. However, both manipulations of amounts and false disclosures can be used in combination to perpetrate financial statement fraud.

Fraudulent Financial Reporting Usually Involves Manipulation of Amounts Rather Than