Why Are the Inventory and Cost of Goods Sold Accounts

Multiple Choice

Why are the inventory and cost of goods sold accounts attractive targets for managerial fraud?

A) There are few if any procedures that can check for fraud in these accounts.
B) These accounts are more significant than most other accounts.
C) There are no adequate methods of record keeping for inventory.
D) Cost of goods sold and Inventory accounts are not attractive targets of frauD.In contrast, selling and administrative expenses are made up of many less significant expenses, and are more difficult to misstate to a great extent.