Question 1
Which of the following is a category of fraud?
◦
Fraudulent financial reporting | Misappropriation of assets |
Yes | Yes |
◦
Fraudulent financial reporting | Misappropriation of assets |
No | No |
◦
Fraudulent financial reporting | Misappropriation of assets |
Yes | No |
◦
Fraudulent financial reporting | Misappropriation of assets |
No | Yes |
Question 2
Which of the following is a form of earnings management in which revenues and expenses are shifted between periods to reduce fluctuations in earnings?
◦ fraudulent financial reporting
◦ expense smoothing
◦ income smoothing
◦ Each of these is correct.