Hypothesize a scenario in which one could intentionally misstate liabilities for his or her personal financial gain. Recommend two (2) actions that companies can take to prevent or detect intentional misstatements of liabilities for personal financial gain.© BrainMass Inc. brainmass.com March 22, 2019, 3:34 am ad1c9bdddf
Fraud Scheme that misstates liabilities
The most frequent fraud scheme to misstate (typically understate) liabilities is to avoid recording amounts owed in order to show better profits and earn a year-end bonus (personal gain). That is, to not record the unpaid obligations, such as lawyers' fees incurred year end that have not been billed (invoiced) yet or ...
A fraud scheme that omits expenses and related liabilities is discussed and four techniques for preventing or detecting them are shared.