According to professional auditing standards, which of the following best represents a type of fraudulent financial reporting?

a$.$ Management accrues a liability and discloses the possible outcome of a lawsuit prior to settling the matter.

b$.$ Management discloses its failure to meet loan covenants but states that a waiver has been received.

c$.$ Management intentionally excludes from its consolidated results a subsidiary that it controls significantly.

d$.$ Management reclassifies a negative cash balance by decreasing cash and increasing a current liability.