When Dealing with Fraudulent Financial Reporting Risk for Accounts Payable

Multiple Choice

When dealing with fraudulent financial reporting risk for accounts payable,

A) companies will generally tend to overstate accounts payable.
B) it is difficult for the auditor to verify if all liabilities have been recorded if prenumbered receiving reports are used.
C) companies have used fictitious reductions to accounts payable to overstate net income.
D) accounts payable is rarely a significant risk area for fraudulent financial reporting.