Question

Asset misappropriation is ________ likely than fraudulent financial reporting. The amounts involved in asset misappropriation are much ________ than fraudulent financial reporting. Group of answer choices

Answer 1

Answer:

The correct answer is letter "A": more; less.

Explanation:

Misappropriation of assets and fraudulent financial reporting are two major issues caused by one single corporate problem: fraud. Misappropriation is said to be more common than fraudulent financial reporting since it implies using resources of the company that are at hand for personal uses. Instead, the harm caused by misappropriation is less than the caused by fraudulent financial reporting since the latter involves reporting fictitious expenditures, issuing checks in blank, booking "ghost employees", or even using the company's sensitive information -such as account numbers- at will.