Final answer:
Financial statement manipulation is a type of fraud where management modifies financial information to make the company appear better than it is. The perpetrators are company management, and the company itself is the primary victim.
Step-by-step explanation:
The type of fraud described in the question is financial statement manipulation. This occurs when management intentionally modifies the financial information to present a false or misleading picture of the company's financial position. By manipulating the financial statements, management may inflate revenues, understate expenses, or overstate asset values. This can lead to the company appearing to be performing better than it actually is, potentially attracting investors or creditors.
The perpetrator of this fraud is the management of the company. They have access to the financial records and are responsible for preparing and presenting accurate financial statements. However, in cases of financial statement manipulation, management intentionally distorts the information to deceive stakeholders.
The primary victim of financial statement manipulation is the company itself. The misrepresentation of the company's financial health can have serious consequences, such as misleading investors, creditors, and other stakeholders. Additionally, the company may face legal and regulatory repercussions if the fraud is uncovered.