Final answer:
The type of fraud that occurred in the Green Mountain Coffee Roasters case was inventory fraud, where the company inflated its inventory levels. Considering as option number a, b, c and d, option number C is correct.
Step-by-step explanation:
The type of fraud that occurred in the Green Mountain Coffee Roasters case was inventory fraud.
Inventory fraud refers to the manipulation or misrepresentation of a company's inventory records. In this case, Green Mountain Coffee Roasters was accused of inflating its inventory levels to boost its financial performance and deceive investors.
This fraudulent activity was discovered when the company's independent auditor found discrepancies between the physical inventory and the reported inventory levels.