What are the two broad categories of improper revenue recognition included in Table 9 of the report? What is the difference between the two types of improper revenue recognition?

Table 9. Common Financial Statement Fraud Techniques Percentage of the 347 Fraud Companles Methods Used to Misstate Financial Statements Using Fraud Method Improper revenue recognltion 61% Recording fictitious revenues-48% Recording revenues prematurely-35% No description/"overstated"-2% overstatement of assets (excluding accounts receivable overstatements due to revenue fraud): 51% Overstating existing assets or capitalizing expenses-46% Recording fictitious assets or assets not owned-11% Understatement of expenses/llablitles Mlsapproprlation of assets Inapproprlate disclosure (with no financial statement line item effects) Other mlscellaneous techniques (acquisitions, joint ventures, netting of amounts, etc.) Disgulsed through use of related party transactlons Inslder trading also clted 31% 14% 196 20% 1896 24% a The subcategories such as premature revenues or fictitious revenues and assets do not sum to the category totals due to multiple types of fraud employed at a single company Also, because the financial statement frauds at the sample companies often involved more than one fraud technique, the sum of the percentages reported exceeds 100 percent. 4 To avoid double-counting, the information about the overstatement of assets does not include overstaterments of accounts receivable due to the revenue recognition frauds. www.coso.org