In the Case of Equity Funding,the Audit Client

Multiple Choice

In the case of Equity Funding,the audit client:

A) Fraudulently recorded inventories that did not in fact exist
B) Inflated its earnings by recording fictitious sales of insurance policies
C) Moved liabilities off the balance sheet by using thousands of subsidiaries
D) Recorded inventory below cost,therefore understating costs of goods sold and overstating net income