According to a study sponsored by The Committee of Sponsoring Organizations (COSO),the most common way to manipulate revenue accounts is by:
A)reclassifying expenses as revenues.
B)recording fictitious revenues.
C)inappropriately reducing sales returns and allowances.
D)prematurely recording revenue.

Question

Quizplus · Accepted Answer

Recording fictitious revenues is the most common way to manipulate revenue accounts, according to the study sponsored by COSO. This involves recording revenue that does not actually exist or inflating the amount of revenue earned. This can be done by creating fake invoices, recording sales that have not yet occurred, or recording revenue for goods or services that were never actually provided. The other options listed may also be used to manipulate revenue accounts but are not as commonly used as recording fictitious revenues.

According to a Study Sponsored by the Committee of Sponsoring