(2 marks) (b) An easy way to commit financial statement fraud is to overstate ending inventory. Explain how inventory is overstated and how cost of goods sold may be understated. How does this affect the financial statements? Why does this type of fraud tend to put a lot of pressure on the company in the following year? (5 marks) (c) What is the objective when a company commits liability fraud? Describe three of the schemes that could be used to commit liability fraud. (3 marks) Question 4 10 Marks (a) Clearly distinguish identity fraud and identity theft. How serious a problem is identity fraud in Australia? What are the major issues? What methods have been proposed for addressing this problem? (5 marks) (2 marks) (b) An easy way to commit financial statement fraud is to overstate ending inventory. Explain how inventory is overstated and how cost of goods sold may be understated. How does this affect the financial statements? Why does this type of fraud tend to put a lot of pressure on the company in the following year? (5 marks) (c) What is the objective when a company commits liability fraud? Describe three of the schemes that could be used to commit liability fraud. (3 marks) Question 4 10 Marks (a) Clearly distinguish identity fraud and identity theft. How serious a problem is identity fraud in Australia? What are the major issues? What methods have been proposed for addressing this