Identify the True Statement About Detecting Fraud Through Financial Statements

Multiple Choice

Identify the true statement about detecting fraud through financial statements reports:

A) To perform horizontal analysis, convert the financial statement balances to percentages of total assets or gross sales.
B) Vertical analysis is the most direct method of focusing on changes from period to period.
C) Before performing fraud analysis, all three types of financial statements need to be converted to change statements.
D) Small frauds usually do not significantly affect the financial statement balance.