Answer
Fraudulent financial reporting entails deliberate omissions intended to create materially misleading financial statements. Fraudulent reporting could entail distortion of an entity's records, such as details of inventory counts or the wrong application of accounting principles, which results in the concealment of material transactions. Comparatively, embezzlement entails the actual theft or misappropriation of company resources.
Work Step by Step
Fraudulent financial reporting entails deliberate omissions intended to create materially misleading financial statements. Fraudulent reporting could entail distortion of an entity's records, such as details of inventory counts or the wrong application of accounting principles, which results in the concealment of material transactions. Comparatively, embezzlement entails the actual theft or misappropriation of company resources.