Identify the True Statement About Detecting Fraud Using Financial Statement

Multiple Choice

Identify the true statement about detecting fraud using financial statement reports.

A) Performing horizontal analysis requires converting 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 a data-driven analysis that targets fraud and corruption in financial statements,all three types of financial statements need to be converted to change statements.
D) Small frauds may not affect the summarized financial statements significantly to be detected.