Identify the true statement about detecting fraud using financial statement reports.
A)Performing horizontal analysis requires converting the financial statement balances to percentages of total assets or gross sales.
B)Vertical analysis is the most direct method of focusing on changes from period to period.
C)Before performing a data-driven analysis that targets fraud and corruption in financial statements,all three types of financial statements need to be converted to change statements.
D)Small frauds may not affect the summarized financial statements significantly to be detected.

Question

Quizplus · Accepted Answer

Small frauds may not be significant enough to affect the overall financial statements and may not be detected through traditional methods of financial analysis. Therefore, specific fraud detection techniques and tools may be required to identify and investigate such frauds.

Identify the True Statement About Detecting Fraud Using Financial Statement