Term
| Financial statement fraud |
|
Definition
| Intentional misstatements or omissions of amount or disclosures of financial statements to deceive investors, creditors, and other users of financial statements |
|
|
Term
|
Definition
| Risk of material misstatements in financial statements arising from fraudulent financial reporting and misappropriations of assets |
|
|
Term
|
Definition
| The recording of sales of goods or services that never occurred |
|
|
Term
| Liability/expense omissions |
|
Definition
| Deliberate attempts to conceal liabilities and expenses already incurred |
|
|
Term
|
Definition
| When expenditures are capitalized as assets and not expensed off during the current period, income will be overstated |
|
|
Term
| Related-party transaction |
|
Definition
| Occurs when a company does business with another entity whose management or operating policies can be controlled or significantly influenced by the company or by some other party in common |
|
|
Term
|
Definition
| GAAP requires that most assets be recorded at their historical (acquisition) cost with some exceptions. This type of fraud usually involves the fraudulent overstatement of inventory or receivables or the misclassification of fixed assets |
|
|
Term
|
Definition
| A technique for analyzing the percentage change in individual financial statement items from one year to the next |
|
|
Term
|
Definition
| The expression of the relationship or percentage of component part items to a specific base item |
|
|
Term
|
Definition
| A means of measuring the relationship between two different financial statement amounts |
|
|
Term
| f) All of the above statements are true (p 298) |
|
Definition
Which of the following statements is false in relation to the case, "That way lies madness"?
a) Eddie Antar broke into and altered audit records
b) Eddie smuggled company money out of the country
c) Eddie skimmed money to avoid paying extra in taxes and withdrew funds from his foreign bank account to boost revenues
d) Eddie sold stock at inflated prices
e) Eddie and various family members were convicted and served jail time
f) All of the above statements are true |
|
|
