Question

Most illegal acts affect the financial statements:

A) directly.
B) only indirectly.
C) both directly and indirectly.
D) materially if direct; immaterially if indirect

Answer 1

Most illegal acts affect the financial statements both directly and indirectly.

Step-by-step explanation:

Most illegal acts affect the financial statements both directly and indirectly. Some illegal acts, such as fraud or embezzlement, can have a direct impact on financial statements by distorting the reported numbers. Other illegal acts, such as money laundering or bribery, may not directly affect the financial statements themselves, but they can have indirect consequences on the company's financial condition and performance.