An act of two or more employees to steal assets and cover their theft by misstating the accounting records would be referred to as
A) collusion.
B) a material weakness.
C) a control deficiency.
D) a significant deficiency.

Question

Quizplus · Accepted Answer

Collusion is an act of two or more individuals working together to commit fraud or theft. In this case, the employees are working together to steal assets and cover their tracks by misstating accounting records. Therefore, collusion is the appropriate term to describe this scenario. Material weakness, control deficiency, and significant deficiency are terms commonly used to describe internal control issues in financial reporting but do not specifically refer to this type of fraud.

An Act of Two or More Employees to Steal Assets