Which of the Following Best Represents Fraudulent Financial Reporting

Multiple Choice

Which of the following best represents fraudulent financial reporting?

A) The transfer agent issues 40,000 shares of the company's stock to a friend without authorization by the board of directors.
B) The controller of the company decreases warranty expense by $3 million because the company will otherwise miss analysts' expectations this quarter.
C) The in-house attorney receives payments from the French government for negotiating the development of a new plant in Paris.
D) The accounts receivable clerk covers up the theft of cash receipts by writing off older receivables without authorization.