Detecting Accounting Fraud 1st Edition by Cecil Jackson

Exercise 11

In the text, Signal #1 of improper use of related-party transactions states that any disclosures in the notes to the financial statements that the company is doing transactions with any major shareholder, officer, or director of the company should alert the reader to the fact that these transactions could be used to: (a) Hide the company's debt.
(b) Overstate the company's earnings.
(c) Loot the company's assets.
(d) All of the above.