The Great Salad Oil Swindle of 1963 is an asset misappropriation fraud. (T/F)
Introduction: Asset misappropriation fraud refers to a fraud when any thrid-party or employees of the entity abuses there position for stealing or misusing the assets of the organization. It includes embezzlement of cash, assets stolen, and various other related losses.
To examine: Whether the given statement is true or false.
Answer to Problem 1TFQ
The given statement is “False.”
Explanation of Solution
The given case is an example of fraudulent financial reporting. Here, the organization has overstated its income by increasing the amount of inventory and understating the value of expenses. This also overstated the amount of assets.
Therefore, this statement is false.
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Chapter 2 Solutions
Auditing: A Risk Based-Approach to Conducting a Quality Audit
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