Which of the following examples best represents an example of fraudulent financial reporting?

a. Management issues 40,000 shares of the company’s stock to a friend without authorization by the board of directors. 

b. The controller of the company inappropriately records January sales in December so that yearend results will meet analysts’ expectations. 

c. The in-house attorney receives payments from the French government for negotiating the development of a new plant in Paris. 

d. The accounts receivable clerk covers up the theft of cash receipts by writing off older receivables without authorization.