Question

The type of fraud committed by company managers who make false and misleading entries in the books, making the financial results of the company appear better than they actually are, is called:

Answer 1

Answer:

Fraudulent Financial reporting

Explanation:

Fraudulent financial reporting is practiced by managers to present financial position of the firm in a better way. Managers manipulate the figures in profit or loss or balance sheet to make the statements appear good with an intention to deceive investors.

This could be done by managers under pressure from upper management or for personal benefits. It can be avoided by getting external auditors to audit the statements.