In 2010, COSO published a study that provided a comprehensive analysis of occurrences of fraudulent financial reporting that were investigated by the SEC from 1988 through 2007. Sixty-one percent of the 347 fraud cases profiled in the study related to the improper recording of revenues. The revenue misstatements were primarily the result of fictitiously or prematurely recording revenues. The report lists various techniques (labeled a.-f. below).

For each technique, describe how such a fraud would work. You may need to do some additional research.

a. Conditional sales

b. Round-tripping or recording loans as sales

c. Premature revenues before all the terms of the sale were completed

d. Improper cutoff of sales

e. Improper use of the percentage of completion method

f. Consignment sales