Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder

تمرين 30

Which of the following is an example of fraudulent financial reporting?
A) Company management falsifies the inventory count, thereby overstating ending inventory and understating cost of sales.
B) An employee diverts customer payments to his personal use, concealing his actions by debiting an expense account, thus overstating expenses.
C) An employee steals inventory, and the shrinkage is recorded as a cost of goods sold.
D) An employee borrows small tools from the company and neglects to return them; the cost is reported as a miscellaneous operating expense.