There are two types of fraud: misappropriation of assets and fraudulent financial reporting. Identify if the following is misappropriation of asses or fraudulent financial reporting? Justify your answer. 1. Stealing cash after it had been recorded 2. Putting fictitious employees on the payroll 3. Recording fictitious insurance policies on the computer system but omitting the first three digits of policy numbers. 4. Make simple transactions complex so that liabilities can be understated.