X pic has a  bad debt policy whereby aged  receivables who are obviously not going to pay,  are written off. The financial accountant does not enforce this policy.
This might be fraudulent insofar as it creates which of the following effects?
AIt removes funds from the business[|]It results  in the overstatement of profits and  net assets[|]It results  in the intentional overstatement of profits and net assets[|]It results  in the understatement of profits and  net assets