Which of the following is NOT true regarding "topside" journal entries used to commit financial statement fraud?
a. Upper management usually records the journal entry.
b. Entries are recorded to subsidiary ledgers.
c. The journal entry may be recorded after normal business hours.
d. Entries often bypass the normal process for posting journal entries.
b
FEEDBACK: a. Incorrect. This statement is true.
b. Correct. Topside journal entries are recorded directly to a summary journal or general ledger.
c. Incorrect. This statement is true.
d. Incorrect. This statement is true.
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