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    Question

    The most difficult type of misstatement to detect fraud is based on __________.

    A related party purchases. Correct Answer Incorrect Answer
    B related party sales. Correct Answer Incorrect Answer
    C the restatement of sales. Correct Answer Incorrect Answer
    D omission of a sales transaction from being recorded. Correct Answer Incorrect Answer

    Solution

    The most difficult type of misstatement to detect fraud is based on omission of a sales transaction from being recorded. This type of fraud involves deliberately not recording a sales transaction, which can be challenging to detect because there may be no documentation or evidence of the unrecorded transaction in the company's financial records. It requires a more comprehensive and thorough examination of the company's internal controls and transaction records to uncover such omissions.

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