Sunday, July 9th, 2006
How Fraud Occurs-Understating Liabilities / Expense Fraud (Part 4)
Understating Liability/Expense Fraud
(a good example: Enron)
- Not recording accounts payable
- Not recording accrued liabilities
- Recording unearned revenues as earned
- Not recording warranty or service liabilities
- Not recording loans or keep liabilities off the books
- Not recording contingent liabilities






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