Do Managers Opt for Omission Over Commission in Fraudulent Activities?

Summary

The study investigates whether managers prefer to perpetrate fraud through omission (e.g., omitting a transaction from the financial statements) as opposed to a more active form of commission (e.g., recording a transaction inappropriately). The study also explores whether auditors regard this “omission strategy” as less intentional (i.e., fraudulent) when evaluating misstatements.