i. Ouiz 1 -Word File Home Insert Draw Desiqn Layout References Mailings Review View Tell me what you want to do Share X Cut Pa Copy Rrplacr Pasta anial TNu Spec Ileading .1 Heading 2 Tile SubLitle Subul Cr" Eriphdsis Intense C Suung It Select cipbord Styles Accounting Concepts 1. True or False: Fraudulent acts are usually of a financial nature, therefore the fraud examiner must understand the essential nature of financial transactions, how they affect records, financial terminology and accounting theory Discovering fraudulent acts, such as concealing theft of cash, through a review of accounting records, is generally one of the easier ways of detecting fraud. Explain why 2. Financial Statement Fraud Financial Statement Fraud is one of three types of "Occupational Fraud and Abuse." Identify the other two and describe how all three are related to the "Fraud Tree" on page 81 Financial Statement Fraud is defined as the deliberate misrepresentation of the financial condition of an organization accomplished through the intentional misstatement or omission of amounts or disclosures in the financial statements to deceive financial statement users. (A) Explain what this means, in your own words; (B) Discuss how does purposely overstating assets and revenue and understating expenses and liabilities accomplishes this type of fraud, and discuss why the opposite may be true (e.g. understating assets or revenue) 3. 4. Paye lyf1 3/1 words LF English (United Sis:es Type here to search 2:41 PM 9/21/2017