What type of disclosure fraud is perpetrated when a company fails to disclose significant events that occur after the balance sheet date (i.e. subsequent events)?
A) Misrepresentation of the company or its products
B) Misrepresentation in financial reports
C) Misleading footnotes
D) None of the above

Question

Quizplus · Accepted Answer

: CORRECT. SIGNIFICANT SUBSEQUENT EVENTS SHOULD BE DISCLOSED IN THE FOOTNOTES.

What Type of Disclosure Fraud Is Perpetrated When a Company