Which of the Following Best Represents Fraudulent Financial Reporting

Which of the following best represents fraudulent financial reporting?

A) The transfer agent issues 40,000 shares of the company's stock to a friend without authorization by the board of directors.
B) The controller of the company decreases warranty expense by $3 million because the company will otherwise miss analysts' expectations this quarter.
C) The in-house attorney receives payments from the French government for negotiating the development of a new plant in Paris.
D) The accounts receivable clerk covers up the theft of cash receipts by writing off older receivables without authorization.