Question

If a fraudster manipulates the assumptions used to calculate depreciation charges in order to increase earnings to a desired figure, which general method of financial statement fraud is the fraudster using?
a. Going outside the accounting systemb. Beating the accounting systemc. Going around the accounting systemd. Playing the accounting system

Answer 1

Answer:

Playing the accounting system

Explanation:

Playing the accounting system means fraudsters introduces false information or influences the way the accounting system operates so that results will give higher amounts than one would normally get.

For example creating fictitious customers and assigning sales figures to them, aimed at inflating sales.

In the given instance the fraudster manipulates the way the accounting system calculates depreciation in order to gain from the inflated figures.