If a fraudster manipulates the assumptions used to calculate depreciation charges in order to increase earnings to a desired figure, which general method of financial statement fraud is the fraudster using?
A) Going outside the accounting system
B) Beating the accounting system
C) Going around the accounting system
D) Playing the accounting system

Question

Quizplus · Accepted Answer

Manipulating the assumptions used to calculate depreciation charges to influence earnings is an example of "Playing the accounting system." This involves using the flexibility within accounting rules to misrepresent the financial condition or performance of the company.

If a Fraudster Manipulates the Assumptions Used to Calculate Depreciation