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Which of the following is usually the hardest fraud to detect?

a) liability fraud
b) revenue fraud
c) asset fraud
d) disclosure fraud

1 Answer

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Final answer:

Disclosure fraud is generally the hardest type of fraud to detect because it involves complex manipulation of financial reporting. Embezzlement, a form of asset fraud, is an example of corporate crime where individuals misappropriate funds or property from their organization.

Step-by-step explanation:

The question you've asked pertains to the detection of various types of fraud within a corporate environment. Among the options provided, disclosure fraud is usually considered the hardest to detect. This type of fraud involves the misrepresentation or omission of important information in financial reports, making it challenging to uncover without a thorough analysis of all the information and contexts surrounding the disclosures. By contrast, liability, asset, and revenue frauds are generally easier to detect, as they often involve either tangible manipulation of the books or are more likely to be revealed through routine audits and controls.

Regarding the reference information you provided, an example of corporate crime would be embezzlement, which is a form of asset misappropriation and fraud perpetuated against an organization by its own employees or officers. Embezzlement represents a breach of trust wherein individuals misappropriate funds or property supposed to be under their stewardship.

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