An employee decides to steal cash from his/her employer. What would be the best way to conceal such a fraud?
a. Record the stolen cash as an expense.
b. Writing down accounts payable for a supplier.
c. Increasing accounts receivable from a customer.
d. Writing down as dividend paid to shareholders.
a
FEEDBACK: a. Correct. Fraudsters usually try to conceal their fraud in the income statement, as these accounts "reset" each year.
b. Incorrect. This involves accounts that are less conducive to concealment.
c. Incorrect. This involves accounts that are less conducive to concealment.
d. Incorrect. This involves accounts that are less conducive to concealment.
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