Which of the following is a documentary symptom that relate to all kinds of understatement of liability fraud?
A)Transactions recorded in a complete or timely manner.
B)Reconciliation statement on unexplained items.
C)Unusual discrepancies between the entity's records and confirmation replies.
D)Balances or transactions that have supporting documents.

Question

Quizplus · Accepted Answer

Unusual discrepancies between the entity's records and confirmation replies can indicate understatement of liability fraud, as the entity may have deliberately omitted certain liabilities from its records to make its financial position appear stronger than it actually is. A, B and D are not necessarily indicative of understatement of liability fraud.

Which of the Following Is a Documentary Symptom That Relate