his is a two part question. Six liability understatement fraud schemes are listed below.

Part (a) Describe three (3) of the fraud schemes listed below.

Part (b) Also, provide a short explanation why liability understatement may be difficult to detect.

Understatement of accounts payable

Understatement of accrued liabilities

Recognizing unearned revenue (a balance sheet credit) as earned revenue

Understatement of future obligations

Understatement/failure to record long-term debt

Omission of contingent liabilities