Which of the following is a valid reason behind the prevalence of revenue-related financial statement fraud?
A)It is easy to manipulate net income using revenues and receivables accounts.
B)Till date,none of the revenue-related frauds have been uncovered.
C)A reversing effect of the fraud automatically occurs only in the subsequent period.
D)Auditors focus more on balance sheet items than on revenue accounts.

Question

Quizplus · Accepted Answer

Revenues and receivables accounts are susceptible to manipulation as they can be easily inflated or understated, leading to a corresponding impact on net income. This makes revenue-related financial statement fraud prevalent.

Which of the Following Is a Valid Reason Behind the Prevalence