Detailed Explanation:
Rationale for Correct Answer:Forced reconciliation occurs when fraudsters alter the perpetual inventory records to conceal shrinkage. By adjusting the records, they make the books appear consistent with the physical count, hiding theft or loss.
Analysis of Incorrect Options:
A – Too vague; does not specify perpetual records.
B – Incorrect; inventory is concealed, not shrinkage records.
D – Write-offs are a different concealment method.
Key Concept:Forced reconciliations as a concealment method in inventory fraud.
[Reference:ACFE Fraud Examiners Manual (2020 International Edition), Inventory and Other Assets — Concealment of Shrinkage., , ]
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