An intentional misstatement or omission of amounts or disclosures with the intent to deceive users is known as:
A) erroneous financial reporting.
B) fraudulent financial reporting.
C) negligent auditing practice.
D) fraudulent audit practice.

Question

Quizplus · Accepted Answer

Intentional misstatement or omission of amounts or disclosures with the intent to deceive users is known as fraudulent financial reporting. Option A, erroneous financial reporting, refers to a mistake made unknowingly in the financial statements. Option C, negligent auditing practice, refers to the failure of an auditor to perform their duties with reasonable care. Option D, fraudulent audit practice, is not a recognized term and is not applicable in this context.

An Intentional Misstatement or Omission of Amounts or Disclosures with the Intent