The most common fraud committed on behalf of an organization is:
A) vendor fraud.
B) employee embezzlement.
C) fraudulent financial reporting.
D) customer fraud.

Question

Quizplus · Accepted Answer

Fraudulent financial reporting is the most common type of fraud committed on behalf of an organization. This refers to the intentional or reckless manipulation of financial statements to deceive investors, creditors, or other stakeholders. It can involve misrepresentation or omission of information, falsification of documents, or deliberate misapplication of accounting principles. Vendor fraud, employee embezzlement, and customer fraud are all potential threats to an organization's financial integrity, but they are less prevalent than fraudulent financial reporting.

The Most Common Fraud Committed on Behalf of an Organization