Chapter 1, Problem 4.3CS

If a company reported fi ctitious revenue, it could try to cover up its fraud by: B . increasing liabilities.

What role does the rationalization phase play in the process of financial statement fraud? A) Concealing fraudulent activities B) Initiating the fraudulent process C) Justifying unethical actions D) Exploiting weaknesses in controls

Accounting fraud is the intentional manipulation of financial statements to create a false appearance of corporate financial health. What necessary actions to use to avoid accounting fraud.

Business damages, as a result of financial fraud, directly impact the operations of any company. Under this premise: What can be, in your opinion, some of the commercial damages resulting from financial fraud? What methods can you use to assess the damages caused by financial fraud? How do generally accepted accounting principles help prevent financial statement fraud?

What are the most common approaches that perpetrators use to commit fraudulent financial reporting

Business damages, as a result of financial fraud, directly impact the operations of any company.  What can be, some of the commercial damages resulting from financial fraud? What methods can you use to assess the damages caused by financial fraud? How do generally accepted accounting principles help prevent financial statement fraud?

What are two positive and two negative consequences that this might pose to the company in future fraud prevention

Identify one specific type of accounting fraud. What damage does the perpetration cause? What could be done to prevent it?

If a company reported fi ctitious revenue, it could try to cover up its fraud by: C . creating a fi ctitious asset.