Ask Question
25 July, 05:18

If a fraudster manipulates the assumptions used to calculate depreciation charges in order to increase earnings to a desired figure, which general method of financial statement fraud is the fraudster using?

+3
Answers (1)
  1. 25 July, 06:27
    0
    The correct answer is letter "D": Playing the accounting system.

    Explanation:

    An accounting system implies having a set method to enter transactions of a company that allows recording the inflows and outflows of the entity to eventually, after a period of time, determining if the organization was able to reach its objectives or if there are adjustments that must be done to accomplish those goals.

    Thus, if a fraudster guesses what the depreciation of the assets of a company is to increase earning, that individual is playing the accounting system.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If a fraudster manipulates the assumptions used to calculate depreciation charges in order to increase earnings to a desired figure, which ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers